There are two things for you to check here:
Did you press Enter after the send email command in the action file? If this line is the last line in the command file, it will not get executed if it doesn’t have a carriage return.
Did you configure your SMTP server in PacketWise? Email notification won’t work if you haven’t configured an email server.
See Configure an SMTP Server in PacketGuide for details.
After configuring the email server, use the email test CLI command to make sure the server is accessible.