I just found an interesting article that pretty much explains how move knows where it is, very interesting read for those who don't know much about the technology and help them understand and appeciate move more.
http://iwaggle.blogspot.com/2010/09/calibrating-hues-how-sony-playstation.html
it's the future of handheld
PS VITA = LIFE
The official Vita thread http://gamrconnect.vgchartz.com/thread.php?id=130023&page=1