Symptoms
When MANUALLY adding the "if current Workflow Activity is [PlaceholderValue]" condition (VS when it is automatically added when using a Smartforms Client Event wizard) this condition does not evaluate to true even though process instances is currently on the Activity specified.
Diagnoses
This issue has been associated with a bug scheduled to be resolved in the 4.7 iteration of the product.
Resolution
A possible workaround at this time is to not include this "if current Workfllow Activity is" condition the worklist item can still be opened via the "open worklist item" rule and action-ed via the "action a worklist item" rule without this conditional check.