For those who might have been wondering here's the resolution to the above issue:
jQuery(document).ready(function($) {
$("a[rel]").each(function(i) {
$(this).overlay({
expose: {
color: '#AAAAAA',
closeOnClick: false
},
closeOnClick: false,
onLoad: function() {
var wrap = this.getContent().find("div.wrap");
if (wrap.is(":empty")) {
wrap.load(this.getTrigger().attr("href"));
}
}
});
});
});