I agree with @peter and @peter :)
What comes to mind are a few conditions when the wrapping is ok. One of the main problems here is that the user might not notice that he had completed a full circle and is now seeing the same items a second time. So, to avoid this, I'd use wrap only when both these conditions hold:
- The list is not dynamic and not very large.
- I'm going through the items in a master-detail relationship, so that in the master list I can see the selection moving.
Which is why the wrapping in Facebook and Picasaweb albums is so bad. I keep realizing that I've already completed one cycle only about 5 photos into it.
It's ok for instance in the Options dialog of Word 2007 (it doesn't actually exist there, but IMO it would be ok if it did):