Ok, so I have decided that due to researching extensively that OpenFire is not very good right now due to memory leaks, and resource usage, and the fact my system is really old and it slows it down a lot seemingly.
However I FIXED IT! I actually found a way to fix the problem of not being able to log into the admin area by removing excess plugins I had including userservices from my /opt/openfire/plugins folder and removing all lines from the xml file to do with this plugin and from the database. Then I restarted and when I went to the site it had a setup. I did the setup, not changing any variables but modifying the ones I could to match what was in my config / database. For example the connection to the database on localhost and the database name openfire for one. But then I realized Openfire was already at like 600 megs or more and I had just started it and it sat at 250 megs or so of memory originally. Well something is wrong. Turns out there are various problems and further more some of the main key parts of Jabber are no longer supported with it such as the gateway.
So I have switched to ejabberd and gotten it running fine and can connect through my IM client. However now it doesn't connect to Joomla so I am wondering if I can modify this plugin to work with it somehow but I am not sure how it will be possible.
However I have discovered this which looks like it authenticates with Joomla:
http://www.ejabberd.im/joomla-login-php
Now to put it to the test.