LOL...your Holy isn't really failing, your macro is working. However you aren't casting it on a real mob. Just standing in town. So your holy 'fails' because it can't damage other PC's and the friendly NPC's in town....cast it w/o the macros, you'll get the same chat log entry. Or, and this might be a crazy idea, go outside town, and pick on a marmot to test your offensive macros.