Thanks again, Andrew.
Still no luck with the testing removal of a PS. I've been able to get acknowledgement of the "change" in both SIM(WBEM) and the Vsphere Client (alarms), but no alerts via snmp. However, if I log in to the ILO and send a test alert via snmp, it all works like a charm.
Where do I tell SIM the a "lost PS" is not an informational event and I want to be alerted? is there a WBEM notification system/config file somewhere?