From the help file:
Encode or decode text in %vars or &binvars using Uuencode or Mime.
The second parameter consists of switches, where m = mime, u = uucode (default), b = &binvar, and t = text (default).
The final encoded line is made up of 60-character chunks. You can specify N if you want mIRC to return the Nth chunk. N = 0 returns the total number of chunks in the line.
If encoding/decoding a &binvar, the identifiers return the actual number of characters written to the &binvar. Note that encoding uses 33% more storage space.
The last two parameters are optional, default to uuencode, and N = 1.
//var %x = $encode(Hello $me $+ !!,m) | echo -a Decoded %x to: $decode(%x,m)
Brief example that encodes your nickname and stores it in a var, then echoes it.