I am trying to create a 8.5x11 folded 5.5 that will have a spiral bound
So the trim is 5.5" x 8.5" right? Then set up a document as 5.5" x 8.5", facing pages with 40 pages. You would only need the script if you are bleeding objects on the inside gutter, so it's a good idea to avoid inside bleeds if you can.