AndrewFurr:
err woops, forgot to add /echo before output in the debug section of step 6. I updated the original post and should have corrected the issue.
As I don't have mIRC installed right now I cannot test the fix. Let me know if there is any more problems.
EDIT: Also, if you are still not receiving an email, check your spam folder. After that, if you are still not receiving an email PM me and we can try to debug why.
The problem with sending emails from a residential IP address, is a lot of times it will be blocked by either the MX server (Mail exchange server) or it could even be blocked by your ISP (thinking you have an infected computer sending out spam).
Shaneny:
The script should automagicly do a DNS lookup for a MX server, no setting needed.