I often have friends link to websites in their status'. I can't click them though because kopete doesn't allow that option. Or does it? currently I have to retype the URL into the browser which is insanely annoying.

Is this in the Kopete notification or in the chat window itself?
I know it works for both here. You might want to try the forum Jabber notification system to see if that gives you clickable links (it does for me)

sorry not notifications or chat windows but in the buddy list. besides everyone's name is a status update and i can't click on links if they're presented unfortunately.

Unfortunately as far as I am aware, this does not seem to work due to the way status messages are implemented as a popup.

Hmm. That's unfortunate.