LF Addon.
 

Is there an addon already that takes your friends chat and makes it pop out (i.e. changes its color/font/size)?

Just want to know, if not I will try to create my own.

The default UI now lets you right-click your friends' whispers and make them pop out into a new frame.

WIM (WOW Instant Messenger) might fit the bill for you:

http://www.wimaddon.com/

ScrollingMessageFrame objects (such as chat frames) only support changing the color of individual messages, not the font, outline, size, shadow, etc.

So is there a way for me to color my friend's individual messages? Like for instance, color all my friends messages as bright blue.

Yes, but I don't know of any addons that do this.

I'll see what I can do. :)

Thanks.