You need to edit the file "/etc/init.d/ircd"
Change line 35 from:
daemon /usr/sbin/ircd
to
daemon /usr/sbin/ircd -s
When this option is specified, iauth will not be started. This means that the IRC daemon will perform "ident lookups" (RFC 1413) internally to attempt to authenticate incoming connections. No other authentication mechanism will be used.
To use ircd you need to run it from this script;
/etc/init.d/ircd {start|stop|status|restart|condrestart|reload}
Hope this helps. I've never ran an irc daemon before. Might play with it myself for awhile
