I've mainly only done the matrix pictures version of the papagayo stuff but I have two things I'd recommend based on your screenshots. One is you named the node "Outline" but called it "outline" in the face definition. I don't know if its case sensitive but I would make them match just in case. I also would drag out the faces effect much longer. I'm not sure you can expect the eyes to do something in just a couple seconds but I guess they should at least be showing in some position.
If all else fails then post your xlights_rgbeffects.xml and the sequence xml file and someone make take a stab at helping you.
