in automator no errors but nothing happens, nor Growl notification
OS X difference ? I won't run 10.7 until it has been fully weaned - probably many months away - it seems to have a weak cost-benefit ratio at the moment :-)
With the service, check, of course that you have selected some text. With the script, make sure that you have cut and pasted all of the script itself into the script editor a missing line at the start, for example would certainly cause errors.
Good luck !