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well what did you think? Nintendo would just allow you to save games onto an SD card and rampantly pirate them to other Wiis? Come on.

Yes, you can save your VC games to your SD card, if you want to play them though, you need to transfer them back to the internal flash memory. The SD card is for storage and nothing else. If you want to have a lot of games without having to re-download every time, it makes sense. If you only want a couple of games, it doesn't.