I think for SME server irssi would be the best irc client to use (if you mean irc server than I have no idea).
I am currently in the process of installing it.
step 1)
download ncurses from
ftp://invisible-island.net/ncurses/ncurses-5.4.tar.gzscp the file to your SME server machine
scp ncurses-5.4.tar.gz root@SMEserver:~/
type in your root password
log on via ssh to your machine as root and type
./configure
make
make install
step 2)
download the source code
http://www.irssi.org/?page=downloadselected to download the glib library automatically
log on via ssh to your machine as root and type
./configure
make
make install
Keep in mind these steps may not work as I am currently in the middle of compiling irssi, but it hasn't spat any errors out yet.
I'll keep you posted if it works
edit:
works perfectly