SCOM Dynamic Group not Showing Health Watcher

I have the following code which shows a group of servers based on a registry key value. I am trying to add in the health watcher for heartbeat alerts. The computers show up in the group, but not the health watcher. What am I doing wrong?

      <Discovery ID="UINameSpace5f2cab25dac54b879a72830bf59d283a.Group.DiscoveryRule" Enabled="true" Target="UINameSpace5f2cab25dac54b879a72830bf59d283a.Group" ConfirmDelivery="false" Remotable="true" Priority="Normal">
        <Category>Discovery</Category>
        <DiscoveryTypes>
          <DiscoveryRelationship TypeID="MicrosoftSystemCenterInstanceGroupLibrary7585010!Microsoft.SystemCenter.InstanceGroupContainsEntities" />
        </DiscoveryTypes>
        <DataSource ID="GroupPopulationDataSource" TypeID="SystemCenter!Microsoft.SystemCenter.GroupPopulator">
          <RuleId>$MPElement$</RuleId>
          <GroupInstanceId>$MPElement[Name="UINameSpace5f2cab25dac54b879a72830bf59d283a.Group"]$</GroupInstanceId>
          <MembershipRules>
            <MembershipRule>
              <MonitoringClass>$MPElement[Name="Type80531327bc2f439dba7c289399a2728e"]$</MonitoringClass>
              <RelationshipClass>$MPElement[Name="MicrosoftSystemCenterInstanceGroupLibrary7585010!Microsoft.SystemCenter.InstanceGroupContainsEntities"]$</RelationshipClass>
              <Expression>
                <SimpleExpression>
                  <ValueExpression>
                    <Property>$MPElement[Name="Type80531327bc2f439dba7c289399a2728e"]/AttributeDiscoveryGeneratedByUI9bc587a1ea5f4493a7d745766a57b922$</Property>
                  </ValueExpression>
                  <Operator>Equal</Operator>
                  <ValueExpression>
                    <Value>TEST</Value>
                  </ValueExpression>
                </SimpleExpression>
              </Expression>
            </MembershipRule>
<MembershipRule>
  <MonitoringClass>$MPElement[Name="SystemCenter!Microsoft.SystemCenter.HealthServiceWatcher"]$</MonitoringClass>
  <RelationshipClass>$MPElement[Name="MicrosoftSystemCenterInstanceGroupLibrary7585010!Microsoft.SystemCenter.InstanceGroupContainsEntities"]$</RelationshipClass>
  <Expression>
    <Contains>
      <MonitoringClass>$MPElement[Name="SystemCenter!Microsoft.SystemCenter.HealthService"]$</MonitoringClass>
      <Expression>
        <Contained>
          <MonitoringClass>$MPElement[Name="MicrosoftWindowsLibrary7585010!Microsoft.Windows.Computer"]$</MonitoringClass>
          <Expression>
            <Contained>
              <MonitoringClass>$Target/Id$</MonitoringClass>
            </Contained>
          </Expression>
        </Contained>
      </Expression>
    </Contains>
  </Expression>
</MembershipRule>
          </MembershipRules>
        </DataSource>
      </Discovery>

Thanks in advance. I have followed all the threads and I am not able to determine what is incorrect.

Mike Hanlon