Express 3.0 + Socket.IO working example !

Server code ( app.js )
var express = require('express');
var app = express.createServer();
var socket = require('socket.io');
app.configure(function(){
  app.use(express.static(__dirname + '/'));
});
var server = app.listen(8081);
var io = socket.listen(server);
io.sockets.on('connection', function (socket) {
 console.log("connnect");
 socket.on('disconnect', function (socket) {
  console.log("disconnect");
 });
});

Client Code ( index.html )

<script src="/socket.io/socket.io.js"></script>
<script>
  var socket = io.connect('http://localhost:8081');
</script>

put these files in the same directory and install all dependencies.
run server !!
you can also download/fork the code from the link below.
https://github.com/sreekumar-kr/Expree3.0---Socket.IO