Dear oh dear i made such a silly error, I can't believe i took so long to realise
Code:
# Jails - specific
jail_irc_rootdir="/usr/home/jail/irc"
should be
jail_irc_rootdir="/home/jail/irc"
*sighs*
Thx guys lol
---Edit---
Yeah anomie i was also surprised to see /home/ existing rather than /usr/home, I don't know if that was the default for FreeBSD 7.0-Release (unlikely) or weather the data center configured it that way for some reason.