there is one bot palbot: http://www.palbot.com/
do Virtual Nick
but not able to put color nick in nicklist
only show nick in channel/query text area
it's don't change the irc protocol
but require a validate nick, and modify the nick
when chatting, it send text by prefixing some hidden code
PRIVMSG #chan ^k99^k... ^k..^k.. user typed text goes here

the another palbot parse the hidden code
which will modify user's nick, render color on nick, and append chars to it(won't del/insert chars)