so i made this simple character here

and i rigged it with bones but now i can't use the smart bone feature on it
for example i try to move my arm up

in the action window i created the option that when you move this bone up it corrects the object it is manipulating

but when i get out of the action back in the mainline it does not work the arm does not correct itself and the points don't move.
so i tried a second time and this time i did not bind the layers to the bones... and that did not work ether...
as you can see here the upper layers are bonded and the lover layers are not

so i was wondering if any of you guys have any idea on how to fix this
so i am adding a link here http://www.sendspace.com/file/891mo1 where you can download my file and see what is wrong. (only 1 action is in this file but it is enough to see it does not work )
i would really appreciate any kind of help because i am doing this for my school project that i can't afford to fail