The mods are in the process if fixing the bugs. It was released a bit early before they could tweak some minor glitches, because everyone was complaining that there was no chat. So in order for them to please the boards they had to release a bugged version.
The major glitches include that the chat cannot differeniate who is a mod and who isn't, which means everyone has the power of mods. It is being worked on and should be up in the near future. As for people that got banned by misusers of this power, I guess shoot a PM to the Mod of your choice and report who banned you and that it was just a mistake.
Funny thing is when the chat isn't available everyone bitches. Once the chat is back, almost everytime I go no one is there. Funny how things work...
