The script to add edge loops works in a very similar way as the "Connect Edges" command - it will cut some edges in half and add a new loop; it's a bit better than the "connect Edges" command, because it will keep the surface rounded. If you want it to work, you have to select only one edge of those you want to cut (see the first image). The script will find the ring of edges and cut them all; remember, all the faces in the ring must be quadrilaterals!
The second image shows how it works in real life... If you want dense edge loops around the eye, select one edge (on the left) and run the script (on the right...).
Tip: if you want to see what the script will do in one particular place, select one edge and press Shift+q ("Quad Ring Select" command) - it will select some edges, the same edges that would be cut by the script (if they form a ring)
