
Beat Chapter 10, "Secrets & Salvation," to unlock Expert and Impossible difficulties.
To unlock Challenge Mode and the following levels, enter this code at the title screen using the Wii Remote D-pad: DOWN, UP, LEFT, RIGHT, RIGHT, LEFT. If entered correctly, a small chime will sound and the game will restart.
You can't switch weapons on the fly -- although you can pick up new ones -- but if you quit all the way out to the Main Menu, then return to the level, you'll be able to access the weapon loadout screen.