Code
<if Skill="Ninjutsu">
<!-- Ninjutsu Rules -->
<if Spell="Utsusemi*">
<if spell = "Utsusemi: Ichi" buffactive = "Copy Image*" NotBuffActive = "Silence|Mute|Omerta|Obliviscence">
<midcastdelay delay = "3.3" />
<cmd when = "midcast">cancel 66</cmd>
</if>
<else>
<cancelspell/>
<return/>
</else>
</if>
<else>
<equip when="precast|midcast" set="Utsu"/>
</else>
</if>
These are your Utsusemi rules. Utsu Ni and Ichi are being caught by the first if (skill=ninjutsu) and second if (spell=utsusemi*), but not the third if (spell=utsusemi:ichi AND buffactive="copy image" AND notbuffactive=silence|mute|omerta|oblivicense), and so are defaulting to the following else statement, which cancels the spell and exits the control flow.
Basically, you're missing an elseif after the if to catch Ichi and Ni (other than in the case that you are casting Ichi and have shadows already up). You also have no equip tags, so it..won't equip anything when you cast.
Something like this will work, not taking into consideration what sets you actually want to use for precast and/or midcast.
Code
<if Skill="Ninjutsu">
<!-- Ninjutsu Rules -->
<if Spell="Utsusemi*">
<equip when="precast|midcast" set="Utsu"/>
<if spell = "Utsusemi: Ichi" buffactive = "Copy Image*" NotBuffActive = "Silence|Mute|Omerta|Obliviscence">
<midcastdelay delay = "3.3" />
<cmd when = "midcast">cancel 66</cmd>
</if>
<elseif NotBuffActive = "Silence|Mute|Omerta|Obliviscence">
<midcastdelay delay = "1" />
</elseif>
<else>
<cancelspell/>
<return/>
</else>
</if>
<else>
<equip when="precast|midcast" set="Utsu"/>
</else>
</if>
Edit: Actually, this is a little cleaner. Also, last time I checked you cannot queue command statements--so keep in mind that your cancel may not actually wait 3.3 seconds.
Code
<if Skill="Ninjutsu">
<!-- Ninjutsu Rules -->
<if Spell="Utsusemi*">
<if NotBuffActive = "Silence|Mute|Omerta|Obliviscence">
<equip when="precast|midcast" set="Utsu"/>
<if spell = "Utsusemi: Ichi" buffactive = "Copy Image*">
<midcastdelay delay = "3.3" />
<cmd when = "midcast">cancel 66</cmd>
</if>
</if>
<else>
<cancelspell/>
<return/>
</else>
</if>
<else>
<equip when="precast|midcast" set="Utsu"/>
</else>
</if>