This is close. If you want to fallback to cisco relay in the event NSE based T38 fails, then you may want to use this instead:
voice service voip fax protocol t38 nse ls-redundancy 0 hs-redundancy 0 fallback cisco
This command: "fax protocol cisco" means that you want cisco fax relay as the primary fax protocol, which you do not. The above will set Cisco fax relay as a fallback/secondary option.
You can set the low speed and high speed redundancy levels to the appropriate values for your environment.
The "fax-relay sg3-to-g3" is fine.
It should be noted that since you are using NSE-based T.38 on the VG-224 that any other gateways which will participate in a fax-relay transmission with the VG-224 must support NSE-based T.38 or the call may fail (or fall back to cisco fax relay).
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