I haven't tried that setup. However, I've been playing around with a Bluetooth LE device, the $25
Texas Instruments SensorTag, which has a gyroscope, accelerometer, magnetrometer (compass), and some environmental sensors. I have thought that it would make the basis for a good headtracker.

Also some people I know are working on a new VR project called
Oculus Rift, a virtual reality device that was funded by a Kickstarter. My understanding is that it has head tracking built-in.

We are going to have a bit of a hackfest with it Wednesday (5/22) night (
follow this Eventbright link).