There seem to be 3 main modes for this patent and the picture examples:

Game -- Play through the game normally. Hint system is available but not forced. So hardcore gamers could just play the game regularly and enjoy the challenge while more casual gamers can get hints if they get really stuck

Digest -- The game goes through important scenes (both movie and gameplay) in order. Essentially the game plays itself in this mode if you will. But you have the option of stopping the digest at any time and playing from that exact point. Plus when you choose to take control you are given the appropriate equipment and stats for that part of the game. No saving though, but it seems to be unneeded

Scenes -- essentially playthrough any puzzle or scene again. Like digest you are given the appropriate equipment and such.

What Nintendo is planning on doing is pretty insane and far more ambitious than some of you realize yet. This just might be the "gateway game" that gamers, casuals and non-gamers could all enjoy.

Legend of Gundam OO?!

Seriously though, it does sound ambitious. So scenes would be puzzles and stuff, or cutscenes?

also the title made me think it was a hard drive that the Wii and PC could use

Chapter skip for video games. Sort of like what the new Alone in the Dark did, but a bit more advanced.

That sounds like a very interesting idea. It basically makes it possible to get rid of those extra save files for those who want to play that favorite boss fight over and over again, and allows those who want a shorter experience but still want to follow the plot of the game a way of getting though without the boring in between filler crap. If it's put in the right hands, and since it's Miyamoto's it sounds like a really excellent idea.

WTF