Your setup needs to look something like this:
var app = express();
var server = require('http').createServer(app);
var io = require('socket.io').listen(server);
...
server.listen(app.get('port')); // not 'app.listen'!
Your setup needs to look something like this:
var app = express();
var server = require('http').createServer(app);
var io = require('socket.io').listen(server);
...
server.listen(app.get('port')); // not 'app.listen'!