I figured it out. I had a notebook of the same name "home". So EN's parser got a little confused and the ordering (tag after notebook) didn't help it "unconfuse it". So the instructions "order matters"...should say well...kinda sorta. When I renamed the notebook it worked just fine. So it appears for this to work, you can have @ in a tag as long as you don't have a notebook with the same name.
It appears you cannot have an @ in a tag and expect this feature to work. I have a tag "@Home" and putting #@home (in the right order at the end of the subject line) doesn't appear to work. Any suggestions?