My selfhosted blog does not show any /wordpress ending. There's no need for it. Just install WP into the highest level folder on the server. The same place you'd normally put the index.html file if you had standard web pages on your site. You have few enough posts that even if you lose anything, it's easy enough to reload.
Also, I suggest you change your permalink structure, the p=12 thing sucks, in my opinion. Go to Settings > Permalinks and choose Numeric or Month/Name as you wish. It makes for better search engine results and bookmarking. Again, sooner is better before you have too many posts.
Just my two cents.