Still working through my problem but I did have some updates I thought I would share. So far a couple of things going on here.

1) first off the script I used in the rule is slightly modified from what you posted on this article. However bottom line was that it was failing on the part where it logs to the event log.

So I changed this:

If bWriteLOG = True Then

oAPI.LogScriptEvent("SQLBlocks",999,EVT_WARNING,sAlertDescription)

Else

oAPI.LogScriptEvent("SQLBlocks",998,EVT_INFO,sAlertDescription)

End If

To this:

If bWriteLOG = True Then

CALL oAPI.LogScriptEvent("SQLBlocks",999,EVT_WARNING,sAlertDescription)

Else

CALL oAPI.LogScriptEvent("SQLBlocks",998,EVT_INFO,sAlertDescription)

End If

This article helped http://msdn.microsoft.com/en-us/library/bb437630.aspx

2) The other issue is that on Windows 2008 servers the events are logging to the Operations Manager Event log. On my 2003 servers it goes to Application Event. Log. However My monitor is looking at the App log not Ops Manager. So I'm going to create 2 Monitors unless anyone can think of another way around this?