Case autocreation rule in CRM

Hello, 

I have a all incoming mails into my mailbox show up as activities in CRM, i want to now create a case automatically for each of these mails. I created a rule in service management to handle this. In the rule, have my Queue seolected, the 'create records for email from unknown senders' checkbox checked and an autoresponse email enabled. In the specify creation and update details subgrid, i have the condition for case creation slected for creating cases whenever the email has a subject. 

Unfortunately, this rule does not create a case,also my email queue doesnt show any queue items (but, the emails show up as email activities in CRM). 

I checked the system jobs, and there is no failed system job recorded on there. 

Any ideas on how to troubleshoot this?

Thanks