I am on Linux Ubuntu and i will not allow myself even using linux to stop using mIRC. I was using mIRC a few minutes ago and switched to another workspace to edit an image using GIMP and i came back to mIRC to see that it was asking for a password of some sort. the windows were distorted and i could not see the text.

WINE = Wine Is Not an Emulator.

any ideas what this is/was ?

As far as I remember, mIRC doesn't ask for passwords unless you have used the locking function.

This sounds like the mIRC lock dialog, I experience similar corruption using Compiz when switching back and forth from mIRC.

I'm guessing mIRC thought it was being minimized to tray when you switched workspaces, as other applications I've used have falsely activated minimize to tray functions also. I don't use the Lock feature myself, so I can't confirm this for you. Just double check your Lock settings (in the Lock section of Settings) and tinker as you wish.