Thanks for your bug report. Unfortunately I was not able to reproduce this issue. I downloaded and installed InspIRCd v2.0.16 with a basic configuration, binding to 127.0.0.1 and so on. I was able to connect to the server, join channels, etc. without any issues from a clean install of mIRC v7.34. I may need to look at your configuration files to reproduce the issue here. I will contact you directly shortly.