Well getting a 2nd computer and putting MIRC onto it (as well as WinXp Home) and having the exact same issue I was quite convinced that the issue had nothing to do with the MIRC program. Feeling quite confident and smarter about tracking the issue down to the firewall (which I had disabled) or an issue with the ISP or even the OS I played with the program just little bit more and on the 2nd computer it started working. It had begun going into chat rooms by messing constantly with the before mentioned MIRC>>Options>>Connect>Local and playing with the options there. The deciding factor seemed to be putting in the host name of my ISP and it's IP# and connecting to Efnet.
What confused me even further was the fact that I tried, now confident that it would work with other networks and it didn't until I played around with the same options and again entered the host name and IP # of my ISP and again it started going into chat rooms.
I don't know if the issues are completely gone but after yesterday and being able to connect with a few servers seems to not be having issue.
Thank you to those whom have started these threads with information and guidance and to Riamus2 for responding to my issue. It helps to not feel alone and going in complete circles.
I assume I will still have software disconnect issue cause something somewhere is not 100% right because I connect with a network/server that said it required IdentD and I was able to chat/whois/list but had a tilde before my name but am happier and relieved to have it connecting. I just don't completely understand why
Take care all and good luck.