ioFTPD needs port 113 OUTGOING in order to request ident from a machine logging in. Since outgoing connections are normally allowed by hardware firewalls this is usually only a problem with a software firewall which it looks like you are not using so you should be fine. On the other hand the guy logging in who specifies an ident in their hostmask needs to forward and reply to the request...
Try changing the user's hostmask to *@host.dyndns.com and see if that works. Since this only resolves to 1 IP at a time this should be plenty secure and all that's really needed.
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