Keep trying! The server may go down from time to time.
The server is set up to restart itself in case of downtime. This should not really be an issue.
It's most likely something on your end, or between you and the IRC server.
A couple things to take note of--
1. What exactly do you get in the way of messages when you connect? Just failed to connect? or does it begin to connect and then you see a "closing link" message?
If you see a closing link message about proxies, you/your ISP might be running an open proxy and the proxy scanner detected it.
2. Try the following command (assuming you both use windows). Go to start > run, type "cmd" without the quotes, press enter. (in Vista, type cmd.exe into the search box)
type:
tracert irc.outpostuniverse.net
press enter, and wait until you get back to the command prompt (might be several minutes).
Paste the result you get here. (To copy from command window, right click -> choose mark option. Drag a box around the text you want copied, then right click again to copy. You may need to do this multiple times if the text goes off the screen).