Unit casts a spell targeting a point
Spell equal to (Your dummy spell here)
Set life of all unit type of undead within 300 of the targeted point to -50.
Theres a field called "Unit type of ()" And inbetween the ()s is something like undead, tauren, town hall.
Base a spell of Holy Light. Then go to Storm Bolt, copy the Targets allowed section, then paste it in the Targets Allows spot in the custom made spell.
Just out of curiousity, where do you see a box for Undead when looking at the window for "Targets Allowed". There is "Dead" but thats referring to actual units that have died.