This is actually very very interesting.. I though Gatherbuddy2 in general was broken atm. Had been using it on my pala only, so after reading this i decided to try it on my warlock aswell, which worked perfectly. So it seems that the GB2 simply doesnt work for paladin class atm, which is a bit weird, but it helps narrow down the problem.
EDIT: Changed from Holy to Retribution after reading the above post, and it solved everything, so am running GB2 fine atm. Its still a bit weird i cant run it as holy though.