No, him being in DF shouldn't affect anything. You should still be able to log him in unless he's in a zone that's changed (BGs or Frontiers). From the log in screen you should be able to see what zone he's in. It should say in the character list under the character name. If he's in a battleground or Frontiers area, that may be the reason. If he's in one of the normal classic zones, then you have a different problem.
If you can't figure it out, try writing to support@darkageofcamelot.com. Give them as much information as possible, including your Log-in ID (not your password), server, realm, character name and character location. Then explain exactly what client you have installed (i.e., old installation from CD; new installation from CD; online download from FilePlanet, etc.) and what happens when you try to log the character in.
If you haven't yet done so, try to log the character in again - maybe the server was down the first time you tried. Palomides was being upgraded on 11/3 and was therefore unavailable - was that when you tried?