what's not working? Is there an error message in the status window when you try to run my example? Nothing happens at all? It displays an echo that isn't doing what you want? The echo is not colorizing the nicks when you substitute them in place of User1 User2 User3?
This was an example snippet to make sure whether this is what you want, since your story was changing between your posts. The goal was for you to test it to see which cases it worked correctly and which it didn't. My example isn't auto-magically handling all incoming and outgoing text, since I wasn't clear which of your 2 prior posts was describing what you really want. But my example command needs to be done in the channel window or it can't know which nicks to colorize. Does this next show your own nick in the right color?
//echo -a $color_the_nick($me)