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Wiggy is the despotic ruler of Mega Wiggy Land, a chaotic realm bearing an outward resemblance to Dinosaur Land, but infinitely more hostile, glitchy and unpredictable. He resides in the side tower of Wiggy's Castle. The castle itself is used as a sound test; it is unknown why Wiggy chose these living accomodations. Wiggy exists in the Wiggy Universe, a lesser dimension that budded off from the United 'Gees Galaxy.
Mega Wiggy Land actually exists on Wiggy's body. It started as a game that Wiggy and his brother Mauryo would play as children with action figures on top of Wiggy. When the adult Wiggy turned to evil, he used his powers to morph it into a personal pocket dimension. Compared to Weegee, Wiggy is normally weak, but displays godlike reality-warping powers inside Mega Wiggy Land. Anyone Wiggy touches will be trapped in the dimension forever unless they can go to his castle and defeat him. Mauryo was the first person to suffer this fate. Different regions are located on different parts of his body. Wiggy's Castle can be found in the palm of his hand.Wiggy's friends include the jolly old bumblebee Forrest Kaysen, a visitor from the Red World. Kaysen is known to own a summer home within Mega Wiggy Land.
Look forward to the Mega Wiggy Time video game, which details the story of Mauryo's epic quest to end the mad tyranny of Wiggy and free the others trapped in his dimension. Coming to a SNES emulator near you in 2013 (hopefully). You can find screenshots at the SMW Central forum thread.