I have some trouble understanding the following proof, were I can't even figure out how some terms are defined. But first I state some definitions and preliminary lemmas.
- A transformation semigroup $T = (P,S)$ is a semigroup $S$ equipped with a faithful action of $S$ on $P$.
- With each finite set $R$ associate the transformation semigroup $(R,R)$ defined by the action $r\cdot s = s$ for every $r,s \in R$. In particular, if $R = \{ 1,\ldots, n\}$, this transformation semigroup is usually denoted by $\overline{ \mathbf{n}}$
- For each $n > 0$, let $\mathbf D_n$ be the class of finite semigroups $S$ such that, for all $s_0, s_1, \ldots, s_n$ in $S$, $s_0 s_1 \cdots s_n = s_1 \cdots s_n$. In such a semigroup, a product of more than $n$ elements is determined by the last $n$ elements.
- A transformation semigroup $(P,s)$ divides a transformation semigroup $(Q,T)$ if there exists a surjective function $\pi : Q \to P$ and, for every $s \in S$, an element $\widehat{s} \in T$, called a cover of $s$, such that, for each $q \in Q, \pi(q)\cdot s = \pi(q\cdot \widehat{s})$.
The usefulness of such an cover comes from the fact that for transformation semigroups $(P,S)$ and $(Q,T)$, if such an cover exists, then the semigroups $S$ and $T$ divide each other in the usual sense, meaning there exists a surjective morphism between them.
Now let $T$ act on $S$ from the left and let $X = (P,S)$ and $Y = (Q,T)$ be transformations semigroup with those semigroups, then their wreath product is denoted by $X \circ Y$.
Lemma: If $2^k > n$, then $\overline{\mathbf{n}}$ divides $\overline{\mathbf{2^k}}$.
Proposition: Let $S$ be a semigroup of $\mathbf D_n$ and let $T = S\cup \{t\}$, where $t$ is a new element. Then $(S^1, S)$ divides $(T,T) \circ \cdots \circ (T,T)$ ($n$ times).
Proof: Let $\varphi : T^n \to S^1$ be the partial function defined on sequences of the form $(t,\ldots,t,x_i,\ldots,x_1)$ where $x_1,\ldots, x_i \in S$ by $$ \varphi(t,\ldots, t, x_i,\ldots, x_1) = \left\{ \begin{array}{ll} x_i\cdots x_1 & \mbox{if } i > 0 \\ 1 & \mbox{if } i = 0 \end{array}\right. $$ Clearly $\varphi$ is surjective. If $s \in S$, we set $\widehat{s} = (f_{n-1},\ldots, f_1, s)$, where for $1 \le i \le n-1, f_i : T^i \to T$ is defined by $(t_i,\ldots, t_1)\cdot f_i = t_i$. Thus $$ (t_n, \ldots, t_1) \widehat{s} = (t_{n-1}, \ldots, t_1, s). $$ It follows that if $p = (t, \ldots, t, x_i,\ldots, x_1)$ is in the domain of $\varphi$, then $p\cdot \widehat{s}$ is also in the domain of $\varphi$ and $\varphi(p\cdot\widehat{s}) = \varphi(p)\cdot s$. This proves the propostion. $\square$
Corollary: Every semigroup of $\mathbf D_n$ divides a wreath product of copies of $\overline{\mathbf{2}}$.
Now my qestions, first I don't even understand how the semigroup $T$ is formed, because nowhere is the product with this adjoined element declared. Also I don't see how the Corollary is implied, what has the wreath product of $(T,T)$ to do with copies of $\overline{\mathbf{2}}$?
EDIT: These defintions and the lemma come from the Book Infinite Words by J.E.Pin and D.Perrin, which could be seen here on Google Books.
(1) You gave yourself the definition of the transformation semigroup $(T,T)$ (see 2. With each finite set etc.). You also recalled that $(T,T)$ is isomorphic to $\bar n$, where $n = |T|$.
(2) Your quote of the Lemma is incorrect. The correct statement (Lemma 4.10 in the book) is
Lemma: If $2^k > n$, then $\bar{\mathbf{n}}$ divides ${\bar{\mathbf{2}}}^k$.