or player one is an ass. (Here is where I shoot myself in the foot because Player1 is an imm or something.)

Player one could have been making two points about what your character said ic.

One: Don't talk ooc using an ic channel. Use the newbie channel if necessary.

I personally totally agree with this. I hate ooc stuff being used ic. I don't mind someone saying "how do I tell the group something" and will respond (to them only) with "type gt hello", because it is clearly similar to reading a helpfile. However, I do hate "My dad's calling me. I have to go and eat. brb".

Two: Don't use shorthand when on an ic channel. (i.e. he might not have been referring to you saying "k" on the newbie channel.)

If he was referring to you using shorthand on the newbie channel he is just being an ass (imho). You can use whatever typing convention you want on the newbie channel as long as others understand your query. I can remember some idiot on the newbie channel lecturing me on using the newbie channel for ic speech, because I explicitly quoted something from the NEWBIE2 helpfile. Some people are asses. Ignore them.

However, ic, I don't think you should be saying stuff like "roflmao". It may be that Player1 was referring to something you said in character.

That said, I think if you genuinely wanted your character to say "k", you might want to actually use the apostrophe and say 'k. (Might want to consider saying something a bit less modern though.)