The .WII File Extension
When talking about "Wii files," the most common file extension you'll see is .WII. However, a .WII is not really an individual "file" in the same sense that we would think about a spreadsheet, graphic or code library.
The .WII for a Wii game is the raw disc image. Obviously a piece of Wii software is made up of more than one "file," but in terms of what a PC file system can "see," everything falls under the single .WII image file.
Those familiar with disc imaging and image burning can equate a .WII file to an .ISO image. It is a single file that defines an entire disc.
Working with .WII Images
Users with modded Wii consoles may be able to convert .WII images to burnable formats to create playable Wii discs, but there are a couple of very important considerations that must be understood by any user who attempts to do this.
First, modding your Wii will mean that your console is no longer "authorized" by Nintendo. Nintendo will no longer offer support or service on your unit if it is modded, regardless of your warranty status. In short, you should assume that opening up the Wii voids your warranty. If you are not experienced working with electronics, or are in any way unsure about what you are doing, you should not mod your Wii.
Secondly, you should understand that downloading and burning .WII images is completely illegal unless you are creating a backup of a Wii disc you already own. If you do not legally own the game you are working with, you are engaging in software piracy. This is a form of theft, and there are serious legal consequences.
Other Wii File Extensions
Another file extension sometimes seen when working with Wii "homebrew" platforms (creating games or software for modded Wii consoles) is .ELF. An .ELF is an executable file format, similar to an .EXE on a PC, and is also used in PlayStation and PlayStation 2 homebrew applications.