First of all why are you posting a decompiled code? Open the text document where you were writing opcodes and post that. Which tool are you using for compiling the code? Use Sanny Builder and put "jump_if_false or jf or else_jump (004d)" instead of else_goto.
Of course that NPC gets bugy - it's because the actor 9@ desperately try to commit suicide:
| CODE |
| 05E2: AS_actor 9@ kill_actor 9@ |
For god sake just shoot the moron and put him out of his misery (or use the opcode 05BE).
The command "01C2: remove_references_to_actor 9@" will make the actor normal again.
Better yet - use the command 05E2 and force the actor to shoot YOU becausse your code is a total disaster.
I'm done talking, read this:
CLEO tutorial