[cbk1994]

The first step to making it better is to lose that terrible styling.

PHP Code:

function onCreated() {
  setTimer(0.05);
  this.on = 0;
}

//#CLIENTSIDE
functon onPlayerEnters() {
  if (this.on == 1) {
    if (player.guild != "Judge" || player.guild != "Preformer") {
      player.chat = "...";
    }
  }
  setTimer(0.05);
}

function onPlayerChats() {
  if (player.guild == "Judge") {
    if (player.chat == ":muteon") {
      this.on = 1;
      player.chat = "Level-Mute Enabled";
    }
    elseif(player.chat == ":muteoff") {
      this.on = 0;
      player.chat = "Level-Mute Disabled"
    }
  }
  if (this.on == 1) {
    if (player.guild != "Judge" || player.guild != "Preformer") {
      if (player.chat != "...") {
        player.chat = "...";
      }
    }
  }
  setTimer(0.05);
}

function onTimeout() {
  if (this.on == 1) {
    if (player.guild != "Judge" || player.guild != "Preformer") {
      player.chat = "...";
    }
  }
  setTimer(0.05);
} 


You misspelled function in "onPlayerEnters". In addition, there's no need for a timeout anywhere. You also misspelled "Performer" twice.

You can't have the toggle bit on clientside, as then it only applies for the specific player.

PHP Code:

function onPlayerChats() { // player chats
  if (player.guild == "Judge") { // can control the level
    if (player.chat == ":muteon") {
      this.muteOn = true;
      player.chat = "Mute On";
    } else if (player.chat == ":muteoff") {
      this.muteOn = false;
      player.chat = "Mute Off";
    }
  } else if (this.muteOn && player.guild != "Performer") {
    // it's on and player is not a judge or performer
    player.chat = "...";
  }
}

function onPlayerEnters() {
  this.onPlayerChats(); // call this in case people enter with chat
} 


Does that make sense? All taken care of serverside, with events.