Creating a validation rule for a field based on a return item on a look-up control

I have a form that has a look-up field pulling information from a list in SharePoint.  One of the drop-down choices is NOT LISTED.

When this is selected from this control, I would like to hide a panel an unhide another panel make some of those fields mandatory based of the look-up field choice of NOT LISTED.  I am currently using a check box to accomplish. 

I have tried using the regular validation rules, but it seems like it doesn't read what is in the look up field.