> Your cursor must be on a code line, not on a special "comments" line. I've
> had

the same behavior once. Just move down your cursor one or two lines away...
>
>
 Are you saying you have succesfully detangled noweb embedded code? If so,
ill have to take a look at the code to see where the bug is. It doesn't work
no matter where i place my cursor. My tangled output is also different -

;; [[file:~/Desktop/test.org][/home/seth/Desktop/test\.org:2]]

(let ((x 1))
  (message "x=%s" x)
  ;; [[file:~/Desktop/test.org][wrappable]]
  (setq x (+ 4 x))
  ;; wrappable ends here
  (message "x=%s" x))

;; /home/seth/Desktop/test\.org:2 ends here


Notice that detangling works if there is no noweb being used.