You can start netplay games without in IRC server *manually* - but then you cannot set up the game via FS-UAE Launcher .Netplay via FS-UAE Launcher netplay lobby requires an IRC server.
I'm guessing the problem is that the IRC server does not like & channel names. You can try with the other supported naming convention for game channels: #xxxx-game, instead of
/join &mytest
you can try using:
/join #mytest-game
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