Well, I just changed the setting in which port mIRC listens from 59 to 60... and I was able to finally receive a DCC without locking up..........
However, I then shutdown mIRC restarted it, went to receive a DCC and I again locked right back up.

I just got off the phone with my Cable provider. I am going to try and see if they will give me a new modem... real longshot I suppose hoping that something is wrong with the modem, but I have tried everything else.
This is a toughie.