After you have installed psybnc you must run make menuconfig.
cd /usr/bin/psybnc make menuconfig
This will spawn the psybnc configure program which requires
make menuconfig-curses is an alternative. Both will create a
/usr/share/psybnc/psybnc.conf file. To use the default settings just hit exit as soon as it opens.
It is also suggested that you chown everything in the
/usr/bin/psybnc path to the user that will use to run psybnc.