identd is running and is accepting connections:
aura% telnet ugh auth
Connected to ugh.dreamhost.com.
Escape character is '^]'.
What problem are you seeing exactly?
Do note the bits about irc in kbase - mainly that you're not supposed to run an IRC client unless you get a unique IP and connect with irc -h [your domain] or equivalent. And, of course, bots and bouncers aren't allowed. That includes scripts within IRC clients that act as bots.
I'm not sure exactly why we have this rule, but I'm assuming it at least partially has to do with the fact that if someone DOS attacks the host you're connecting from, we can safely null-route traffic to that IP without affecting other customers.