You're still seeing the original reply because we didn't halt it. If you changed $1- to just $1 then you should see your nick echoed on a line by itself because $1 in a raw reply is always your nick so try this...
raw 203:*: {
echo -a $2
haltdef
}
I can't pick out exactly what you need because I'm not an oper, all I see when I try a trace is this 481 reply...
RoCk Permission Denied: Insufficient privileges
$1 = RoCk
$2 = Permission
$3 = Denied:
$4 = Insufficient
$5 = privileges
