Yup, sorry, another gaming post, but this is rather cool.
If I'm understanding how this works, basically the sensor bar emits infrared light via its LED's and the remote picks up on this light to calculate placement and what have you. The candles are simply replacing the sensor bar's LED's.
Would love to try this out, I'm yet to buy a Wii, Moneys a bit of an issue with most things now days, I'll get one eventually though.
Nintendo should release a Limited Edition package without the sensor bar and with a box of exclusive "Wii" candles and a lighter.