If you're familiar with Photoshop, then you already know how to use this. Click and drag on the large square to set saturation and brightness. Click and drag on the thin rectangle to set hue. You can also drag the sliders and/or import a color using the buttons at the bottom.
Creating this kind of color picker was a good excuse to learn some new math and try out some UI ideas. This color picker is directly based off of the Photoshop color picker. I wanted to show the extra formats (like CYMK), but there wasn't enough real estate in our cozy 480x360 stage size. The lower region of the saturation-brightness square may vanish when you change the hue from 0. For whatever reason, the implementation of the color effect block clips pixels that are near 0, which is quite a terrible flaw.