Hi Ian,
Basically at the tip of a wing, or a rotating blade or pretty much anywhere really a fluid (liquid or gas) naturally flows from an area of high pressure to an area of low pressure.
Because of the curvature of the upper surface of the wing, the air has further to travel but 'arrives' at the same time it therefore has traded an increase in kinetic (motion) energy for a decrease in pressure energy.
At the wing tip, the higher pressure air below the wing has an opportunity to move around the tip towards the lower pressure area above the wing. Combined with the forward motion of the aircraft, this is what leaves the spiral vortex. Obviously theres a lot of 'wasted' energy in the vortex, so whats really happening is regarded in engineering terms as a "loss". The vortex adds drag to the wing (I think :think:

) and is obviously a nuisance for following aircraft. The whole point of the wingtlet is to make it harder for the air to generate this vortex. You can find similar things to prevent tip losses on modern turboprop, helicopter, compressor and even computer-fan blades, usually a sort of kined or twisted tip.
Sorry my engineering is a little rusty (pardon the possible pun), I hope that makes sense!
Toby