is it hanging on "*** Looking up hostname" or "*** Checking ident"? This is both the server's and your fault-- the server is attempting to connect to you on port 113 to verify your ident but it cannot and is probably waiting to timeout (maybe on purpose). It's also your fault because you're not allowing it to connect to you.
There are two solutions: either use another server (on the same network) that doesn't enforce identd checks as strictly, or, if they all do this, fix your identd by visiting
http://www.portforward.com and setting up port forwarding in your router to your LAN ip on port 113. For this second suggestion I'm making the assumption that you're both behind a router and have access to it; if either assumption is false this won't work either.