Hi benpaddlejones,
Well, I think you can get a good idea of how it works by looking through the documentation found in the zip file, look under Doc/*
But briefly, the package works like just "another" wiimote connection utility. It continuously scans for wiimotes, and try to connect if any (known) motes is found.
Secondly it integrates with existing Whiteboard solutions software modules, so that these can automatically be started if a connection is established.
Third, it continuously monitor the health of the connection, restarting a connection attempt if the signal is lost.
Finally, the hardware serves to automatically power the wiimote up and down, so that a connection can be made fully automatic. The hardware is however not needed for "a handheld" solution, just press "sync" or "1-2" to make the connection. But the hardware makes it much easier to use!!
Hope this answered some of you questions...
Enjoy
.carsten