He doesn't bring good news: The problem is in the firmware of the displaycontroller, but he adds that he's already talked to IBM, has arranged to have an address box sent to me so I can send the laptop in to Big Blue, and hands me a slip of paper with my IBM work order number on it.
The capacitive display can recognize orientation, letting you drop the controller in any position throughout the surface, then outputting a map to match.
Two-dimensional tracking would be managed via the existing Move's visual spectrum camera, or by using a display-mounted IR emitter in conjunction with a remote mounted sensor (again, just like the Wii controller).