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This question has been asked before, in a different form. Hooking up a Wii would be just like hooking up any other game system. You can do it, but the lag caused by using a USB TV tuner would make playing a game hard.
try the eyeTV hybrid. It has a zero lag game mode. This passes a signal straight through the device and onto the imacs screen. So the only lag is the time the signal takes to get down the cable!
Bear in mind however that this will still be an analouge signal as you can only input via composite or s video, thus the quality suffers.