What happens to a quasi-undead creature when fortunate fate activates?

Question

The creature casts the 8th-level spell veil of undeath [necro] (SpC 229), which says, in part, that

Like an undead creature, you are damaged by cure spells and healed by inflict spells. You don’t actually gain the undead type from casting this spell.

Then the creature is the target of the 7th-level Clr spell fortunate fate [conj] (SpC 99), which says, in part, that

You surround the subject with an aura that immediately heals the creature if it is subjected to an effect that would kill it (reduce its hit points to -10 or below). When this event occurs, the fortunate fate spell intervenes by immediately triggering a heal spell upon the target.

If the creature's reduced to -10 hp or below before the expiration of the spells fortunate fate and veil of undeath, what happens?

1. The creature is the subject of the spell fortunate fate's heal effect and regains hp; the spell heal is neither a cure spell nor an inflict spell, and the creature looks like a genius.
2. The creature's even deader upon the spell fortunate fate's activation; the spell veil of undeath uses cure and inflict spells as shorthand for positive and negative energy, and the creature looks like an idiot.
3. Your answer, if neither of the above.

Answer 1

Rules-as-written, you’re only healed by inflict and damaged by cure, not otherwise treated like an undead creature for, e.g., heal and harm.

Which is ridiculous, but they worded veil of undeath very poorly.

I would never play it that way, and I’d have heal damage a creature under the effects of veil of undeath.

On the other hand, I’d probably also allow a player to cast a version of fortunate fate that casts harm instead of heal. Actually, I’d most likely just let fortunate fate be smart enough to cast the correct version when it was triggered.

Answer 2

I think the intention behind the veil of undeath spell was that the caster would be harmed by all healing spells(positive energy) and healed by all harm spells(negative energy). As KRyan pointed out, the spell wasnt worded very well so that would have to be made as an assumption, which isnt always the "right" answer. I believe the mention of not getting the undead creature type is to avoid also getting immunities to crit, and Damage Reduction, etc. Other things that "Undead" creature all get.

That being said, They way I would rule it, is as I stated above, because that makes the most sense to me. So heal would also hurt the creature with veil of undeath and harm would act as heal.

Second to that, I would also take KRyan's stance of letting the spell caster or the spell itself, choose which way to go, as its a fairly powerful spell(7th level) and has a particular affect in mind.