did you paste the full thing or did you intentionally cut the alias name out? judging by what the timer is passing the "ident" alias it seems like that might be your "ident" alias and only need "alias ident {" to be added..

Code:
alias ident {
  var %nickNbr = $1
  if %nickNbr !isnum { 
    %nickNbr = 1 
  }
  nick $read -l %nickNbr nicklist.txt
  /msg nickserv identify $nickserv password
  inc %nickNbr
  if %nickNbr <= $lines(nicklist.txt) {
    .timerb1 1 $autoIdentDelay ident %nickNbr
  }
}


not sure if you have something to activate that alias though..