Spike,
The reason it won't post for me is because until Facebook has approved your action, you can only test it with people that are administrators or developers of your Application. So, until it's approved by Facebook, it won't work for me or other 'normal' visitors to your site.
As for posting to the wall, as mentioned above:
Facebook has recently changed how the automated read action works lately. It doesn't always show in the Timeline, but it can show in the ticker, news aggregations, and other areas.
They are changing how automatic posts, like "reading" (an article), "watching" (a video), and "listening" (to a song) show in a user's Timeline because too many automatic actions from apps have been marked as spam by users. To protect app/website owners, Facebook stopped those posts from being so prominent, but they do still display in various social channels. Facebook also has recently updated the Timeline view and *I believe* read actions are starting to show up again in the new view (if your Timeline is using the new view), but that's still subject to change.
One final note. If you have the automatic post on user registration or user login, Facebook will likely deny your Open Graph Action. Facebook changed their requirements for feed posts to be that a user must approve the message, or be able to edit it, before it's posted to their wall. If you're doing the automatic post on login/register, that would run afoul of their policies and may cause your Action to be denied.
Though similar, an automatic post by an Open Graph Action is completely allowed. It's just the feed post type that we used to make on Login and Registration that can cause problems. So, before you submit to approve, you may want to disable that feature.
Hope that helps,
Alex