Comment **No Title** (Score 1) 75
Why not use public key encryption with irc? Ie, each users client creates a private/public key when connecting to the server, and gives the server the public key. Everytime you join a channel, every user in that channel downloads your public key, every message they type gets encrypted with every public key (I believe this can be done so that if you encrypt by password a, b, and c, either a, b, or c can decrypt, alone) and distributed to every person in the channel. Your client decrypts with your private key. Same for private message, and then you don't have to worry about the admin sniffing because he can't.
Sound workable? It would be more processor intensive, but at those transmission speeds (as fast as a human can type) that really isn't an issue even for a 386.