Make sure you are testing with CUPC 8.0 MR2 aka 8.0(3), version below that are affected by CSCtf29722 Directory Lookup Rules used for outbound calls. Though from what you are describing it seems to be a display issue rather than a call failure
For how application dial rules work there are some good examples in the cucimoc documentation. The principle remains the same regardless of the product you use. Keep in mind that application dial rules are for translation number from the directory format to the format CallManager understands and directory lookup rules do the opposite: from CallManager number format to the format that the directory will understand. Also remember that a dial rule will stop processing once it matches a hit.