Missing something basic here with the ISBoxer Wow Macro Sets

[MiRai]

Where am I going wrong?

Step 3 as JackBurton says:

3. do a /reloadui in game

Will that go to only his pali's then?

I have stuff like:
!if (character is in "paladins") /s OMG!

But this can be done without that step?

If you only assign a macro to a certain character, then yes -- Which is the recommended method since you save on key binds that way. Otherwise, that particular variable in your example is only really useful (in my opinion) to be used if you wanted things to go to a specific Action Target Group -- Although, it all depends on your setup.