smartfoxserver.com

I was trying to make a game with a lobby chat and making rooms using bits and smartfox. But it was very hard to explore bits since its just a component

Is there a downloadable example for lobby and chat with create game?

SmartFoxBits are packed as components on purpose, so you don't have to care about repetitive tasks as coding the login form, the rooms list, the users list, etc.
If you want to create such features on your own, you should check the other basic examples provided in the SFS package, or in the AS3 examples section of the online documentation.