It compiles fine, but it won't work. I debugged it and found out that the program is stopping at the second line of the setup function (useNunchuk = ...).
I put in "debug points" where the arduino would flash an LED. I put one after each function line of code, but if only blinked once (after "tv.begin(..etc..."). The debug LED for the next line didn't go.
I tried everything independently: my nunchuk works, TVout works, so it must be a problem with the controllers library.
Why on earth are you using this line (which is clearly the issue):?
useNunchuk = boolean(Nunchuk.init(tv, 4));
The init function returns a 1 or a 0, no need to do anything special. Is there even such a function as boolean()?
Why are you not just using: useNunchuk = Nunchuk.init(tv, 4);???