With 10.5.8 and an XSan 1.4 volume folder actions do not work on directories that are stored on the Xsan. Folder actions only work on the internal hard drives (but I haven't tried a USB or Firewire drive).
In the logs I get:
com.apple.FolderActions.folders Path monitoring failed on /Volumes/xsan/RTA no such file or directory
The folder that I applied the action to is /Volumes/xsan/RTA/_watch.