PalTalk is self-titled, "the world's largest voice and video chat community." Using the PalTalk Messenger client downloaded from their website, NLO fans were able to log into the Nobody Likes Onions video chat room to see streaming video of the studio during live show broadcasts, as well as video from webcams from any fans in the room who are brave enough to show their faces.

Resistance to using PalTalk was fierce among some fans (see: The_Lucas), as non-subscribing PalTalk users are subjected to in-room advertising from the company on a frequent basis. Its location in the 'Adult' section of PalTalk also lent itself to the occasional drive-by of lonely Europeans and Asians looking for cyber, which detered some fans from wanting to use PalTalk. Proper use of block filters and quick action from the room admin usually took care of any problems within moments.

PalTalk began as NLO's means of video streaming with Episode XX. Initially, PalTalk was used just for its video streaming, and its chat room would lay dormant. As time went by, and problems were encountered with both AIM chatrooms and the NLO Flash chatroom, PalTalk became the 'official' chatroom for live shows, where fans knew they could go to talk with other fans during shows. PalTalk has since been replaced by UStream for both video streaming and chatroom.