Nothing in your code jumps out at me as wrong. My example (simplified) looks like this:
$().SPServices({
operation: "CopyIntoItemsLocal",
async: false,
SourceUrl: strTemplateSource,
DestinationUrls: [strTemplateDestination],
completefunc: function(xData, Status){
//console.log(xData.responseText); //uncomment this line to see the copy result in the console
if($(xData.responseXML).SPFilterNode("CopyResult").attr("ErrorCode") != "Success"){
alert("The template copy action failed--please try again. If this condition persists, please contact the system administrator.");
}
else{
//Do some other stuff
}
}
});