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I changed this part in my myalerts.php but it didn't fix the issue. What else should I do?
I also tried deactivating-activating but it didn't help.

What change did you make?

From this :

$plugins->add_hook('build_friendly_wol_location_end', 'myalerts_online_location');
function myalerts_online_location(&$plugin_array)
{
    global $lang;

    if (!$lang->myalerts) {
        $lang->load('myalerts');
    }

    $inUserCpAlerts = $plugin_array['user_activity']['activity'] == 'usercp' AND my_strpos(
        $plugin_array['user_activity']['location'],
        'alerts'
    );

    $inAlertsPage = $plugin_array['user_activity']['activity'] == 'alerts';

    if ($inUserCpAlerts || $inAlertsPage) {
        $plugin_array['location_name'] = $lang->myalerts_online_location_listing;
    }
}

To that 

$plugins->add_hook('build_friendly_wol_location_end', 'myalerts_online_location');
function myalerts_online_location(&$plugin_array)
{
	global $lang;
	if (!isset($lang->myalerts)) {
		$lang->load('myalerts');
	}
	$inUserCpAlerts = $plugin_array['user_activity']['activity'] == 'usercp' AND my_strpos(
		$plugin_array['user_activity']['location'],
		'alerts'
	);
	$inAlertsPage = $plugin_array['user_activity']['activity'] == 'alerts';
	if ($inUserCpAlerts || $inAlertsPage) {
		$plugin_array['location_name'] = $lang->myalerts_online_location_listing;
	}
}

Well... It looks identical I found that part in my myalerts.php and copy pasted what you send me, but apparently those are same codes?

Yes, my earlier message was just showing where the modification needs to go, I haven't had a chance to look at what actually needs changing

Ah alright

Does this system show a popup outside of going into the user menu? I see where it shows Alerts after I click my name, but I was hoping it would shop up as popups somewhere, or did I maybe miss a setting?

No, there isn't any popup. The only time the modal shows is when you click on "Alerts" in the header.

It giving me 500 server error . No able to open board.
if deactivating than everything working fine.

Have you checked your server error log? Which version of PHP are you using?

php 5.3.29