Firstly, thank you all for your assistance.
It appears that certain Linksys (and possibly Netgear) routers will reset an IRC connection when a malformed DCC request is received. In fact, it doesn't even have to be a proper DCC request, the flaw can be triggered simply by sending the following string in either a channel, private message, ctcp, notice, etc.. The router will drop the connection. such that it is received by the user in some way. The string is as follows:
DCC SEND anylongrandomstringhere
It is most commonly being seen as "DCC SEND 1234567812340000" but that appears to be unneccessary. The string does need to be 15+ chars in length.
Further, it appears the routers that are vulnerable to this are running vxworks as their embedded OS. Older linux Linksys routers appear to be immune.
Linksys has a fix for this in their lates firmware release for the WRT54G ( v1.00.9)
You can also connect to a non-standard port and the masquerading code won't recognize it as an IRC connection