It cannot tell what position it is at in space, but it can tell where you are aiming it on the screen, what rotation it is at, and in what directions you are jerking it about.
Think the Wii itself would know though via coding? Or by space do you mean as is, the remote can't tell if it's on its side, front, etc, from startup?
(unless the accelerometer gets affected by gravity.....)
Anyways, getting much better with aiming now, seems there was just a learning curve as to where you're general aiming space is, which I assume will be different depending on your TV screen/type size, and it appears it was more accurate then I thought, as the crosshair lined up nicely when I looked down the remote while aiming it as if I were using the sight on a gun.
Only thing that bugged me was that the system froze on me once while I was playing Zelda, hope that was just an error on the game, and not the system itself...
Aside from all that, I'm curious as to when we're getting some online-based goodies, as it is, all we got is the News/Weather channels on the works (a good month away), a small selection of Virtual Console games, and a web browser coming out "sometime".....
I recalled hearing stuff that the Wii will eventually have connectivity with the DS, do things like download demos, trailers, stuff of interest, etc......would like to hear more about that from Nintendo soon.