So I'm trying to use an identity template to kick of the processing.
Then I have a template to match WRAPPER, which contains your stuff, only I'm attempting to constraint it operate on the value of the variable $sub-tree, defined as:

<xsl:variable name="sub-tree" select="/A/WRAPPER"/>

<xsl:template match="WRAPPER">
	<WRAPPER>
		<BEFORE>
			<xsl:apply-templates select="$sub-tree" mode="before"/>

I think you simply want
  <xsl:apply-templates mode="before"/>
here to process all child nodes of the WRAPPER element in mode="before".

		<BEFORE>
		<PULLED>		
			<xsl:copy-of select="$this"/>
		<PULLED>
		<AFTER>
			<xsl:apply-templates select="$sub-tree" mode="after"/>

Then here
                  <xsl:apply-templates mode="after"/>
to process all child nodes of WRAPPER in mode="after".

	Martin Honnen
	http://JavaScript.FAQTs.com/