Did you ever get this problem solved? I have worked on the same problem for some time and have not solved the problem with it not recognizing emailto lines in the policy file. When I look at the screen output, it always says "No email recipients specified, no email sent." even though they are there.
I did find a workaround solution. I put the following line in the twcfg.txt file:
GLOBALEMAIL =
user@domain.com
and now emails get sent to "user@domain.com. This doesn't allow sending individual emails per each rule but at least I am getting one email sent.
If you have suceeded in fixing the problem, please let me know how you solved it.
Thanks