Interesting, that's actually quite a good idea..

That would also make for a quick way to tell the actual offenders then. Actually trying to use words off the banned list would be the only way to get the asterisk in chat then.

Not really. I'll do something like "*Smacks*" and that's not cursing at all? Also people will do "*wordhere" for when they're "spell-checking" themselves in chat, so that people understand what they said was misspelled.

Good point, I didn't think of that part.

Well mabie instead of * use | because almost no-one uses that, to consensor the chat.

I agree, this sounds like a much better idea. It might be troublesome to do, but we could also compile a list of ways people get around the censors to add that in as well so people can't use those as well.

I've seen people space out the word as well as dot and such. The more of those we could ban overall the less chance there would be profanity overall, although any determined person will get around it.

Hm, there should be an algorithim that scans the order of letters to find a match to a blacklist. With certain rules such as 2 or less characters between the selected letters that compose the black listed word. Maybe minor warnings such as an automatic temporary mute on a timer that increases with repetition in a certain designated time period, notification to moderators, and a warning to the offender.

Basically, I'll substitute and use the word "noob" Even if I do "n-o-o-b" or "n o o b" or even "N..O,,O..B" it will still recognize it because it sense the pattern of N followed by 2 O's and a B where there is less than 2 characters, symbols, or spaces, between each of the letters.
The black list could also include mispellings of the word if they still convey the same message such as: n00b
Even if it is too strict and blocks a word like competitions, for the rather vulgar 3 letter word that makes it up, there could be a whitelist or an exceptions list that negates censoring it and can be added to by staff realtime.

If the word is blocked and I try to type it in chat, this might happen V

  First time- auto warning message( in case typo or such)
  Second time- auto sterner warning message, short mute(for the clumsy^^,Might want to skip this depending on leniency)
  Third time- auto Extreme warning message, notification to moderators, auto mute that can be adjusted by moderator

Although it may seem as daunting task, I've seen it done before and it effectively eliminates profanity in chat. Thanks for your time ^^

That's a very genius idea Diggy, perhaps you could even contact Lawrence personally to try to discuss something like this. I'm sure he'd love to talk with someone who has a good idea for bettering the chat, since from what I remember he maintains the chat plugins and would love better ways to deal with the censors and such within it.