if it weren’t for the worrying-looking spacing on the USB port I’d say this is a cool, but very strange, device
it is very likely that this is merely a generic microSD to SD / USB adapter and that its relation to Action Replay is for convenience (USB) at best; it looks likely that Action Replay are using a well-known Wii Message Board exploit called “LetterBomb” http://wiibrew.org/wiki/LetterBomb
update: what the heck *is* this thing