Hmm, so I think i at least understand $k[\{T^{1/n}\}]$ as "polynomials with rational power exponents of $T$, and multiplication there is no problem. In this ring, $(\{T^{1/n}\})$ is a maximal ideal, and $k[[\{T^{1/n}\}]]$ is supposed to be the completion of $k[\{T^{1/n}\}]$ at $(\{T^{1/n}\})$ right?
But isn't $(\{T^{1/n}\})^m=(\{T^{1/n}\})$?