Instant messaging dialogue is used for communication by hundreds of millions of people worldwide, but has received relatively little attention in computational linguistics. We describe methods aimed at providing a shallow interpretation of messages sent via instant messaging. This is done by assigning labels known as dialogue acts to utterances within messages. Since messages may contain more than one utterance, we explore automatic message segmentation using combinations of parse trees and various statistical models to achieve high accuracy for both classification and segmentation tasks. Finally, we gauge the immediate usefulness of dialogue acts in conversation management by presenting a dialogue simulation program that uses dialogue acts to predict utterances during a conversation. The predictions are evaluated via qualitative means where we obtain very encouraging results.