Here's an easier way... it's what I use that I made.. I threw in my reverse text and reverse rainbow text.. for no reason honestly..

Alias:

nextcolor { 
  if ($$1 == 04) return 07
  elseif ($$1 == 07) return 08
  elseif ($$1 == 08) return 09
  elseif ($$1 == 09) return 11
  elseif ($$1 == 11) return 12
  elseif ($$1 == 12) return 02
  elseif ($$1 == 02) return 06
  elseif ($$1 == 06) return 13
  elseif ($$1 == 13) return 04
}
rainbow {
  var %pos = 1, %color = 04, %result = $chr(3)
  while (%pos <= $len($1-)) {
    %result = %result $+ %color $+ $mid($1-,%pos,1) $+ $chr(3)
    inc %pos
    %color = $nextcolor(%color)
  }
  if ($isid) return %result
  else say %result
}

rev {
  var %len = $len($1-)
  var %return = $null
  while (%len > 0) {
    var %return = %return $+ $mid($1-,%len,1) $+ $chr(32)
    dec %len
  }
  return %return
}

Input:

menu channel,status,nicklist {
  Default Output
  .Rainbow
  ..On: set %rbow true | set %reverse false | set %rainverse false | echo 9 Rainbow text is now enabled
  ..Off: set %rbow false | echo 4 Rainbow text is now disabled
  .Reverse
  ..On: set %reverse true | set %rbow false | set %rainverse false | echo 9 Reverse text is now enabled
  ..Off: set %reverse false | echo 4 Reverse text is now disabled
  .Both
  ..On: set %rainverse true | set %rbow false | set %reverse false | echo 9 Both options are now enabled
  ..Off: set %rainverse false | echo 4 Both options are now disabled
}
on *:INPUT:#:{
  if ($left($1,1) != /) {
        msg $active $iif(%rbow == true,$rainbow($1-),$iif(%reverse == true,$rev($1-),$iif(%rainverse == true,$rainbow($rev($1-)),$1-)))
haltdef
  }
}

Just my input.. I had to strip it down heavily due to a custom theme.. but I tested this and it worked as far as what it's intended for.. :S I know this could be shortened and what not, but it's just something I made long ago and I just haven't felt the need to shorten it. Anyways, hope this helps someone.