in hosts.deny (i forget if it's the default, or if i added it myself) i have ALL:ALL[EOF] so the line ends with EOF not end of line. tcpd doesn't like this and IGNORES it. in the logs i get: warning: /etc/hosts.deny, line 9: missing newline or line too long but then tcpd allows the connection through since it doesn't think ALL:ALL is a good rule that should be applied. tcpd should be fixed so that it accepts end of file as end of a line.
tcp_wrappers already has a well defined parser, fix your file rather than the program.