Putting it into the backup folder is up to you. You can place it into the AppData folder if you like and it will work there. It will also work if you place it into the same folder as mIRC.exe as long as you don't install to Program Files. If you install there, you'll want it in AppData.
Thank you for the reply and sorry for the late reply on my part. I got it working! I just followed what you said and every thing is working now.
Just curious, what network(s)/channels do you hang out in on irc?
Thanks again for your help and everyone else as well that replied to my thread(s).