I think you need to clarify the implication that there exists an s with m > s > m' => N*(m,e) intersect S =/= {}. You want to show every neighborhood of m contains a point, correct? So Let N be a neighborhood of m. Find an s in S with this property. And I'm not sure what S' is either.
Your second part confuses me. You assert "there is an s in S for every epsilon-neighborhood of m", is that what you meant to say? This statement implies "the number of elements in S is at least as large as the number of neighborhoods of m"... which is not true in general. Try to write your proof clearly. Mathematics is written in sentences, so if you must use symbols, be sure everything reads like it should.