Thanks a bunch, that did the trick. I moved the bset command to the previous step.
165 11/03/09 02:31PM FILT Match on filter
Hello World (Test_Filter) - Set fail status
Threshold - 1/4.
166 11/03/09 02:31PM EXEC 'Hello World'
167 11/03/09 02:31PM FILT Match on filter
Hello World (Test_Filter) - Set fail status
Threshold - 2/4.
168 11/03/09 02:31PM EXEC 'Hello World'
169 11/03/09 02:31PM FILT Match on filter
Hello World (Test_Filter) - Set fail status
Threshold - 3/4.
170 11/03/09 02:31PM EXEC 'Hello World'
171 11/03/09 02:31PM FILT Match on filter
Hello World (Test_Filter) - Set fail status
Threshold - 4/4.
172 11/03/09 02:31PM EXEC 'Hello World'
173 11/03/09 02:31PM FILT Step Error threshold (4) has been exceeded, taking action of Fail.
174 11/03/09 02:31PM FILT Match on filter
Hello World (Test_Filter) - Set fail status
Threshold - 5/4.
175 11/03/09 02:31PM EXEC 'Hello World'