MAngband

Permanently hallucinating (effect decreases with increased int,wis)
Innate ESP

Nubnub said he'd play it.

I sort of think that it'd be cool for hallucinogens to induce clarity in this race. That might be a little overpowered, though, but it might create an interesting trade in Mushrooms of Hallucination.

Great idea with putting it as a Mindflayer, by the way. When I said the telepathy-hallucination thing, I had absolutely no idea what popular monster it could be translated into. Now, if it does get implemented, at least it'll have a cool race name.

No need for that... play a telepath. They're quite good at ESP.