Postgresql Rules

I have three tables (CUST_CNTCTS, CUST_CO_BILL_ADDR, and
CUST_CNTCT_MAILING_LIST_ADDR) using postgresql 8.1.10

CUST_CNTCTS contains contacts for companies we do business with

CUST_CO_BILL_ADDR contains billing address for these companies

CUST_CNTCT_MAILING_LIST_ADDR associates contacts with addresses so we
know where to send marketing information for each contact

I have a rule (that works correctly) in CUST_CNTCTS that removes a
contact from CUST_CNTCT_MAILING_LIST_ADDR when their "mailing_list" flag
is turned from true to false

CREATE OR REPLACE RULE "mailing_list_to_malng-lst"
AS ON UPDATE TO meedb."CUST_CNTCTS"
WHERE old.mailing_list <> new.mailing_list AND new.mailing_list = false
DO DELETE FROM meedb."CUST_CNTCT_MAILING_LIST_ADDR"
WHERE new.cust_cntct_id = "CUST_CNTCT_MAILING_LIST_ADDR".cust_cntct_id;
COMMENT ON RULE "mailing_list_to_malng-lst" ON meedb."CUST_CNTCTS" IS 'If mailing_list is changed from true to false, remove the contact from the mailing list';

There is also a rule in CUST_CO_BILL_ADDR that sets
CUST_CNTCTS."mailing_list" to false when the address for a contact (that
is in CUST_CNTCT_MAILING_LIST_ADDR) is deactivated

CREATE OR REPLACE RULE "status_to_malng-lst" AS
ON UPDATE TO meedb."CUST_CO_BILL_ADDR"
WHERE old.status::text <> new.status::text AND new.status::text = 'i'::text
DO UPDATE meedb."CUST_CNTCTS" SET mailing_list = false
WHERE ("CUST_CNTCTS".cust_cntct_id IN
(SELECT "CUST_CNTCT_MAILING_LIST_ADDR".cust_cntct_id
FROM meedb."CUST_CNTCT_MAILING_LIST_ADDR"
WHERE "CUST_CNTCT_MAILING_LIST_ADDR".cust_bill_addr_id = new.cust_bill_addr_id));
COMMENT ON RULE "status_to_malng-lst" ON meedb."CUST_CO_BILL_ADDR" IS 'If the status of a company''s billing address is changed from active to inactive, remove the contacts associated with this address from the mailing list by setting the mailing_list flag in CUST_CNTCTS to FALSE';

The problem is that when I change the status of the address from a
(active) to i (inactive) the contacts associated with the address are
removed from CUST_CNTCT_MAILING_LIST_ADDR, but
CUST_CNTCTS."mailing_list" is not set to FALSE

Does anyone see any problems with what I am doing, or is this something
that can't be done with postgresql's rule system?