I think the best way for you to approach this would be to get each piece working at a time.
Start with getting the entity to spawn when you want it to, then move on to getting it to follow waypoints or chase after the player.
Quote: "The number of states used is only relevent to these scripts? By that I mean state 7 isn't reserved in maincode understanding to a paticular type of action such as animating right? Except when talking about waypoints, It seems to me that there are only five in total allowed. Is that true?"
The state of a script is nothing more than a variable to help you control what's happening. You set the variable and check it yourself, it means nothing more than that. There are no state values reserved or anything like that. You can set the state value to whatever number you like (within the limits of an integer, but I doubt you're going to be needing that many states, especially when your script cannot exceed 150 lines) and you may use as many different values as you like.
The one and only,