Im not entirely sure as I am new to mIRC scripting, but wouldn't the first line be:

Code:
on *:!dance:*:#:{


Of course im new, that may not work, but for a bot I'm pretty sure it's:

Code:
on *:TEXT:!dance*:#:{


I would be geatful to a better scripter to confirm?

Very new to mIRC, don't know much.