Judging from what Argo said, they couldn't if they wanted to???
desiv
As far as I know, that's correct. Probably just a spot of confusion as there are two built-in control panels for the site (a standard vBulletin configuration), one for moderators and one for admin. Moderators can ban individual users and look up IP addresses to spot possible sock puppets but don't have access to actual IP range blocking tools. The admin control panel contains everything that the moderation one does, but many additional tools besides, including the IP range blocking tools.
I'm guessing perhaps Transition posted that in a hurry, or has only ever used the admin control panel and was thus unaware of the limitations of the control panel that moderators have access to. Other than the number of controls available, they tend to look very similar if my past experience of vB admin is anything to go by.