Good on you for tackling them socks! Hey, if you got through the heel, the toe is not a big deal. Really!
Perhaps I should tell you the theory behind how you work the toe; then you will understand better.
Usually you start with more like 32 sts on each needle, plus or minus. So you have 1 needle with half the sts on it - 16 sts. The other 16 sts are split between 2 needles - 8 sts and 8 sts. This means that you have half-and-half [this is important; the halves should begin/end at the side of the foot - ie, the base of the little toe and the base of the big toe].
Now you start decreasing, 2 sts at each of the base of the little/big toes. You're shaping the tip here - one of the most comfy things about hand-made socks. Decrease the 2 sts at each base every other row - or, decrease a total of 4 sts every other row.
You decrease down to whatever number your pattern decrees. At this time you slip one of the half-of-the-half needle's stitches onto the other half-of-the-half needle. Now you have 2 needles with the SAME number of sts on each one.
It's time to weave/bind off/finish off the tippy-toe of your sock. Your directions should tell you how to do this; there are several ways, I believe.
Looking at your post, those "wrap" instructions don't make a lot of sense to me, either. Perhaps it's a part of a pattern stitch? or could it be a way to emphasize the flattened effect you get once you start decreasing to the toe tip?
Maybe you could post a picture of what you've done already and/or what the finished sock's supposed to look like?
Hope this long post helps somewhat,