I'm not sure if you had this answered yet or not, but your pick release rules are not what you need to be looking at. You need to have a couple pick rules created and then have those pick rules assigned to a strategy,
I do have a couple questions for you before we go father, assuming you are still having the issue:
Question 1: Are you using LPN's in your reserve subinventory?
Question 2: If you are using LPN's, do you want the entire LPN to be allocated or is it acceptable to reserve partial LPN's?
Question 3: Are there standard pallet sizes in the reserve subinventory?
Question 4: Is the process to pick only in standard pallet sizes (not splitting pallets) from reserve and picking eaches or split cases from your forward pick locations?