i can answers this.
theres are two reasons why you are getting this first is you may not have the +I invisability module loaded which will give you that message check your unrealircd.conf file to make sure it is

or

and most likly scenario is that you have Unreal 3.2 beta 16 the latest build of the Unreal IRCD and as of beta 15 they stoped that module from working and i do believe they deleted it from the download as well so if you are using a beta 14 or bellow conf file you might as well delete the invisability module from it as it will not work in a million years unless you rewrite the module wink