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I can see one valid reason why Johnny Lee did the head tracking the way he did, and it is that it is reasonable to assume that a person is always facing the tv - and thus the wiimote - more or less directly, which almost completely eliminates the problem you have when you tilt the sensor bar around the Y axis, which results in the IR led angle change which would be interpreted as a change in the distance. With the IR leds mounted in the goggles, you can safely assume that they are pretty much always perpendicular to the wiimote, and any change in the angle can be attributed to distance change.