BUT...
absolutely nothing happens. Hazel just sits there and nothing at all happens in the folders supposed being swept.
Did all the usual; logout, loginn... restart...uninstall, reinstall...reselect folder to be operated on...write a new test rule...run rules now
No matter what I do, Hazel does nothing at all.
Mac Power PCG5 dual 1.8G OS X 10.4.8
Any known conflicts

Added some hours later:
Hazel has now worked on one folder but not on my download folder. Here are some bits from the log which look relevant:
2006-10-19 14:49:43.908 hazelfolderwatch[1898] Check-in with launchd failed: 13. Continuing.
2006-10-19 14:49:46.015 hazelfolderwatch[1898] Processing directories: ("/Users/dsl/xdloads")
2006-10-19 14:52:54.103 hazelfolderwatch[1904] Check-in with launchd failed: 13. Continuing.
2006-10-19 14:52:56.151 hazelfolderwatch[1904] Processing directories: ("/Users/dsl/ Holder Folder/camera mag candidates")
2006-10-19 14:52:56.155 hazelfolderwatch[1904] 101-0126_IMG.jpg: Rule test matched.
2006-10-19 14:52:56.243 hazelfolderwatch[1904] 101-0139_IMG_1.jpg: Rule test matched.
2006-10-19 14:52:56.245 hazelfolderwatch[1904] amazing dawn (no faking).jpg: Rule test matched.
2006-10-19 14:52:56.249 hazelfolderwatch[1904] amazing dawn (no faking).tif: Rule test matched.
2006-10-19 14:52:56.255 hazelfolderwatch[1904] IMG_0512.JPG: Rule test matched.
2006-10-19 14:52:56.257 hazelfolderwatch[1904] IMG_0516a.jpg: Rule test matched.
2006-10-19 14:52:56.259 hazelfolderwatch[1904] IMG_0578.JPG: Rule test matched.
2006-10-19 14:54:45.751 hazelfolderwatch[1911] Check-in with launchd failed: 13. Continuing.
2006-10-19 14:54:45.777 hazelfolderwatch[1911] Another hazelfolderwatch process is processing this directory. Exiting.
[...]
2006-10-19 17:21:36.636 hazelfolderwatch[2240] Processing directories: ("/Users/dsl/xdloads")
2006-10-19 17:22:55.664 hazelfolderwatch[2243] Processing directories: ("/Users/dsl/ Holder Folder/camera mag candidates")
2006-10-19 17:26:36.609 hazelfolderwatch[2248] Processing directories: ("/Users/dsl/xdloads")
2006-10-19 17:27:55.612 hazelfolderwatch[2249] Processing directories: ("/Users/dsl/ Holder Folder/camera mag candidates")