Comment 11 for bug 434196

Ah, OK.
I just checked with the XML Console and coccinella is sending the password to the server. So to blame the transport on the server. However, with XMPP MUCs the password is used to allow entering the channel, on IRC its usually used to identify the nick, and IIRC on IRC you can also have password protected channels. So I'd guess if the server side transport supports passwords for channels, it would take the password to enter the channel rather than to identify the nick.
I haven't tried to enter a password protected channel yet, but I think there is no way to tell the transport that the password should be used to identify the nick instead of using it for entering the password.