I'm on an IRCX server written in python
Just found out something, when a user gets killed and it echos the kill in the status window $status for everyone on that server changes from Connected to Disconnecting.
Is this a mIRC problem? or a server problem?

from what you've explained, i'd guess its an error in the format the kill messages are being sent to clients. tell the admin of the server/network to double check it

The kill format from that server is:

:NickServ!NickServ@electrickz KILL LEET :Ghost nickname

Thanks I've fixed this for the next version.