The relevant line in the policy should read
edit-new {{{has_class ::xowiki::Object} swa} {{has_class ::xowiki::PageTemplate} swa} {id create}}
This works with the current versions of xowiki. If you get still an error with this definition, upgrade to a slightly newer version (0.48, version of March 10) where i refactored much of the policy stuff (update both, xowiki and xotcl-core to the version of the same day).
Concerning your question about page ordering: i assume, you have in the edit form the entry field and you provided some values for this. Simply type in the URL .../xowiki/book and you get the pages displayed (book is a prototype page, which is created on demand from the filesystem and is inserted into the content repository where you can edit it etc for every instance).
I have started to make an FAQ about xowiki: http://alice.wu-wien.ac.at:8000/xowiki-faq/
maybe this helps to answer some of the questions.