I think the problem is that the jQuery code itself isn't wrapped in a document ready function. So it doesn't see the #target
div....
$(function(){
// all the script goes here
});
jsFiddle wraps the code automatically for you, so it's easy to miss... it can be changed by using the bottom select box ("onLoad" by default) within the "Frameworks & Extensions" accordion panel.
Update: Try this (demo):
$(function(){
var items = [
{name:"Alexander"},
{name:"Barklay"},
{name:"Chester"},
{name:"Domingo"},
{name:"Edward"},
{name:"..."},
{name:"Yolando"},
{name:"Zachary"}
];
var template = $("#usageList").html();
$("#target")
.html(_.template(template,{items:items}))
.find('table').tablesorter();
});