$params = array();
$params["title"] = "S.E.X. Chat";
$params["nick"] = "guest".rand(1,1000); // setup the intitial nickname
$params['firstisadmin'] = false;
//$params["isadmin"] = true; // makes everybody admin: do not use it on production servers

$params["serverid"] = md5(__FILE__); // calculate a unique id for this chat
$params["debug"] = false;
$chat = new phpFreeChat( $params );
$params['admins'] = array('Impulse' => '*****', 'Xena' => '*****');
When I type /nick Impulse or /nick Xena it works fine changes the nick and gives admin privileges but does not require password. Also when I type /identify MYSECRET it says "Identification failure".
p.s. changed the posted code password to stars as I do not want to reveal my passwords
