There’s a bug in wp-latex’s automattic-latex-dvipng.php which I’ve just submited.
Here’s what you can do to fix it.
Find the file automattic-latex-dvipng.php in wp-latex installation.
Make a copy of it.
In the Automattic_Latex_DVIPNG class there’s a function called wrap().
Change the lines that read:
if ( $this->size_latex )
$string .= “\n\end{{$this->size_latex}}”;
$string .= “\n\end{document}”;
To be:
if ( $this->size_latex )
$string .= “\n\\end{{$this->size_latex}}”;
$string .= “\n\\end{document}”;
They’ve forgotten that \e in PHP creates an escape character (octal 33). That’s why latex can’t understand the file wp-latex creates, because it contains an escape character.