Well, I ran Housecall ( http://housecall.antivirus.com ) after getting the same odd problem, and within seconds it had removed a malware file called mircflood, an all is fine again!
Hooray for online virus scanners!

My friend has a son that isnt too bright with computers and he was pressing yes to every little pop up that was showing up on his machine. This was with norton running. My friend didn't think much of it. Sort of a "If he breaks it he's gotta deal with it" attitude. (Their machines dont share files back and forth on the LAN)

Well today we used his machine to test something. We ran his copy of irc on his machine and it was fine even though my friends copy of irc on his usual machine was always having the error.

I forget why but my friend turned off his son's machine and all of a sudden the problem went away on HIS machine.

Moral of this story. Check all the machine's in your house for wierd activity. I am going to bet that my friend's son's machine has one or more virus or other malwares and was spamming his network when it was on.

His son is getting a nice new formatted harddrive for breakfest. laugh