i tried it too. With the following conclusion:
Connected via Remotedesktop to DudeServer (Win2003) and tried to start notepad++ via a batch file. I created a file called test.bat in the notepad directory.
Now I created a notification (execute on server) with the following command: "C:\Program Files\Notepad++\test.bat and then I tried the TEST Button.
Nothing happened on my screen. I tried the same with execute locally and it worked. Notepad++ started. Then I found out via taskmanager, that the application started as user SYSTEM in the SYSTEM Environment. Logical because i use Dude as a service.
Maybe you could test your batch first and look as who it would start in Dude? Also don't forget to use the "-character when you create a notification.
Hope it helps.