Actually it's because of what Chessnut said in that thread.

Code:
echo -a - $* $+(test,$*)


becomes

Code:
echo -a - `~$* $+(test,`~$*)


`~$* has to be a space delimited token for mIRC to convert it to the corresponding token so you end with:

Code:
echo -a - 1 test`~$*


(for the first iteration)

As Chessnut stated, a way around it would be:

Code:
scon -r echo -a - $* $!+(test, $* )


to ensure that $* evaluates with spaces surrounding it.