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.