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Support for OTR <http://www.cypherpunks.ca/otr/> would be much appreciated. No other XMPP client that I like supports it (well).
Good starting point would be:
git clone http://mnemonikk.org/emacs-otr
I second this feature request! I would love OTR support in jabber.el; please don't make me keep using Adium.
I started working on this last week. Some rather crude code that nonetheless can exchange messages with Adium can be found at: https://github.com/legoscia/emacs-jabber-otr