I'm pretty sure you mean "warps" instead of "wraps" here. Now, I'm not entirely clear on Palkia's motive. You word it a bit awkwardly, making it seem like Palkia hates herself out of revenge. I think you mean Cresselia hurt her feelings, but then again, I'm not sure. You might want to clear that up before the story starts though.
I didn't think Cresselia really had a following or grunts or underlings. She's pretty much solo, just like Darkrai. They're both alone for good reason though. Cresselia is like the dream keeper of the Pokemon world, so all she does is fly around. I'm assuming she uses the moon to do her rounds, like Santa Clause flies around all night and only during the night. I think immediately, she'd assume the culprit to be Darkrai. So the story should start around there, accusing Darkrai, while he continually laughs like a cynic. And stuff like that, ya know? Totally a random suggestion, but who knows?
I'm always wondering why people try to make their characters find this Pokemon because it's so powerful. So I hope you do satisfy when it comes to explaining what it is and why it's wanted. It is kind of cheating for Palkia, since she can just hide in one of her dimensions for a while, so I'm interested to see how that'll turn out.
Other than that, I can't say too much. It's a good idea, though a bit quirky, but that's fine. Just make sure to stick to a bit of canon. One thing I appreciate in stories is logic. Good luck!