Essentially, only the nunchuk is used for camera and movement. The top joystick moves and strafes your character, while left and right rotations trigger the accelerometer and rotate the characters perspective left and right and a forward / back roll with cause the camera to look down / up, respectively. In play testing the control scheme, using the accelerometer control to move the camera feels awkward, and the rotations seem to move in 15 degree spurts (as opposed to fluid movement). After a few minutes, however, the movement became more intuitive.
With the simplification of movement in one hand, the other hand (and, more importantly, the infrared motion sensor) is free to control whatever -- sword-fighting or off-of-middle cursor positioning. Level Designer Bryan West told us, rather bemused, that with how the control scripts are implemented in the engine that even he could build a game with what's available.
Visually, the engine looked slightly better than Red Steel, especially the character model we saw. West talked with us and lamented about the common trend of ignoring Wii's graphical capability and simply upscaling textures used for PSP titles. We're assuming, then, that we won't be seeing the same issue with Alien Syndrome, a PSP and Wii title using the Vicious Engine. West also told us that they are working on a Wii game internally that involves the Vicious Engine but cannot currently discuss at this time.