Excel 2003 Conditional formatting not behaving as expected

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Excel 2003 on Vista.
Desired result: If the value of a cell (A1) is less than or equal to another cell, change the background.
A1: text
B1: text
C1: 30 {entered value 1}
D1: 20% {modification value}
E1: =(A1-(A1*B1)) {Result 1}
F1: = 35 {entered value 2}

Condition applied to C1: [If value >= (F1-(D1-1%)), then apply highlight to cell]

Currently, I seem to get the highlight only when I apply the condition. Changing the value of F1 does not change the highlight.
 

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