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Field update not working along with visualforce email template alert

Hi All,

I have written a visualforce component which is being used in a template and subsequently in a email alert.

After that timebased workflow was configured such that, after an hour of record creation above email alert is firing along with the field update.

Email alert works perfectly but the field update is not firing.

Please help me on this. 

Any help would be appreciated.

Thanks in advance.

SonamSonam (Salesforce Developers) 
Palak, would it be possible for you to share screenshots of the workflow you have setup(if you can provide me your ORG ID and name of the workflow rule - i could have a look at the configuration - drop me any email with details at sraju @ salesforce dot com)