/admin/wrapper.php is the correct path for pixelpost installed in the root of the site.
This addon isn't template dependent. When it's working, if you access any jpg in the images directory, it layers your watermark over the requested jpg and presents them as a single image. So if you were to browse to myglasseye.com/images/someimage.jpg you should still see the watermark over the image.
Based on what you've said so far you've done everything right. Do you by any chance have anything else in your image/.htaccess file, or perhaps an .htaccess file in your root directory that might be overriding the settings for this addon?