Digsby has announced a new version of the multi-protocol instant messaging client with much better support for Twitter. The idea behind the changes are to make twitter look less of a timeline and more of a conversation between users.

Here are some screenshots of the new Digsby interface for Twitter, that will be demoed later today at DEMOFall 09.

In addition to that you can also reply to users from within the popup message for twitter updates.

Overall there are several new features in the new Digsby client which include the following.

• Single column user interface that doesn’t take up your whole screen
• Tweets are shown in chronological order so you read the conversation as it happens instead of seeing the tail end first and reading it backwards
• Digsby keeps track of unread counts but you never have to mark tweets as read. Digsby does it for you automatically
• Whenever you open the Twitter window, Digsby brings you right where you left off so you can continue reading the conversation without missing a tweet
• Conquer information overload by filtering groups of users out of the main timeline so it is the most useful view and not the most cluttered
• Snapshot view of recent tweets is still available in the Infobox along with the added ability to reply and retweet right inline
• Reply and Retweet right from popup notifications so you can stay on task and stay in the loop
• Automatic URL shortening when you paste links and automatic photo uploading when you paste pictures or screenshots

You can find more information at the official Digsby blog.