I can confirm this as well.
given (raw 482:*:echo -a $1-)
we get:
Wiz126 #Removed You must have channel halfop access or above to set channel mode O
or debug if you'd like:
<- :XX.YY.net 482 Wiz126 #Removed :You must have channel halfop access or above to set channel mode O
mIRC will display:
* Wiz126: you must have channel halfop access or above to set channel mode o
Note the O was incorrectly lowercased (As well as the rest of the sentence, which is less important). The being said, mIRC doesn't lowercase the actual incoming line but rather the statement it prints to the channel. (The typical error message you would get if you try to +o or +v someone when you are a regular user.)
Side note to Riamus2: I have really had enough of your pointless forum posts on here; they just pollute perfectly fine threads. If you don't have any genuinely new informative things to add, don't post. "I don't believe errors are ever shown as actions (starting with *)" - Of course they do! When you try to op/deop/halfop/dehalfop/voice/devoice/etc a user while having insufficient power to do so. (They are colored in $color(info))