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used in chat/AIM slang as a way to denote that the other person has just received a minor slap to the back of the head, like what Leroy ..
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(Somewhat archaic) chatspeak for "grin," deriving, AFAIK, from IRC.
See *g*, which is more common nowadays, especially on AIM..
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laid back,no worries,chillin
we were sittin pretty in the v.i.p. in envy...