Turns out I had to add ~/ to the beginning of the 'scr=' file location like this [ <%@ Register TagPrefix="CuteChat" TagName="EmbedMessenger" src="~/cutesoft_client/cutechat/embedmessenger.ascx" %> ] Then it was just a matter of moving the other part of the code[ <CuteChat:EmbedMessenger id="EmbedMessenger1" runat="server"></CuteChat:EmbedMessenger> ] around within themes/[themename]/common/home.aspx untill I had it just where I wanted it.
Paste the following at the top but below the other lines that look similar in your themes/[themename]/common/home.aspx file
<%@ Register TagPrefix="CuteChat" TagName="EmbedMessenger" src="~/cutesoft_client/cutechat/embedmessenger.ascx" %>
Then add the following wherever you want the messenger to appear on your page:
<CuteChat:EmbedMessenger id="EmbedMessenger1" runat="server"></CuteChat:EmbedMessenger>
I currently have cute chat implemented within my CS07 site.