Hmm, I know one part of this is related to the fact that we need to do a chmod on the css files that gets created.
As for the wrappers. It should actually be:
"wrappers" => "0",
If you look at the source of the editstyle page and find where it's assigning the value for the default wrapper set option, make sure it has a value of 0. It almost sounds like there is no default wrapper.