I myself don't use Chatter's or Prat's fading module. I simply add one line to an addon:
Code:
DEFAULT_CHATFRAME_ALPHA = 0
This should make all chatframe backgrounds invisible all the time (which I personally like). Of course you can edit the number, provided it's between 0 and 1, to choose how transparent or opaque you'd like your background to be; 0 being invisible and 1 being completely opaque.
It won't hide the borders however. I suggest you look at
this if you want to hide them.