CNET reports on Johnny Chung Lee's interaction experiments with the Wii Remote. Lee, a Phd student at Carnegie Melon, does a quick demo of head tracking for VR displays and multi point interaction using the wii remote. His experiments describe with incredible clarity how the wii remote fundamentally works and how the remote might be exploited to do much more than point at single points on the screen and control them. He then proceeds to show us two things demonstrated in the videos below. Brilliant stuff.
How the remote can be used to visualize virtual reality displays by pointing the remote at a user with IR leds placed on their head.
How to get multi-touch interaction by using the remote's camera coupled with an led array, and reflective tape attached to his fingers as sensors.