Without getting into too much debate, things that *should* transpire are:

1. Monitor what your child does (use the allow feature to specify channel. If your son/daughter wants a different channel, have them confront you and specify why it should be added. From there, you can inspect the channel to check its appropriatness)
2. Be in the same room, or atleast close by while the child is on the computer. Kids (assumingly) that young shouldn't be left alone on irc anyways. As ParaBrat mentioned, IRC is not the safest place to be, and should be monitored (constantly, if not occasionally).
3. Block DCC's as one user mentioned (or monitor them at the least). Children shouldn't be taught that it's okay to void a copyright. You should be enforcing the aspects of "proper" downloading, and the children should be aware that just because its available, doens't make it safe.

It's the simple stuff, really. I don't know about any of you but when I was a kid (maybe 4 or 5), I went to a store a pocketed something. My parents found out and made me bring it back, and confront the store manager. That was definatly enough to make me learn a lesson or two. But I guess today, its a simple "make sure you don't get caught".

Again, I don't want to start a rant, just some simple rules that *should* be abided, especially for younger audiences. No matter how much we want to believe, IRC is not always the safest place.