Wii will handle standard jpegs certainly and possibly other formats (I can't access the Wii website from here). The person who you are giving the photos to will need a standard SD card rather than a USB memory stick. The Wii (through the Photo Channel) will display the photos automatically. Then the fun begins... from simply viewing photos to making jigsaws to generally messing around with them!!!!
i tried a USB stick the other night and it did not work. in fact it corrupted the USB stick. luclilly I still had the pics on the camera. as TP said you will have to put them on a SD card. you can pick up a SD card and reader on ebay cheep enough. you digital camera may already have a SD card in it so you could give them that but you will have to take the card back if you do not have a spare.
begs the question what the hell the usb ports on the wii are for. I can only think of the lan adapter for wired broadband. they may be planning on lauching other stuff this year. usb wireless keyboard for use with opera would be nice.
THanks for the feedback. Unfortunately, the requirement for the SD card is a dealbreaker for me, as my camera has a CompactFlash card. Maybe I'll see if I can borrow an SD card...