In Vermont the test consists of:
Start from a stop, go about 40 feet and turn left while inside a coupld of lines painted on the pavement, take another left wherever you want, and stop with your front tire inside a 2' by 2' box without skidding the tire.
Start from a stop, and weave through 5 cones places 1' off center and 8' apart. After that you take a right turn, and you have to do a U-turn within a box. Small box for less than 500cc, 2 feet extra width for 500cc and up. Then you stop after you complete the U-turn.
You go to one end of the course, and line up at a line. The instructor tells you when to go, and you have to go through a timing box at 12-20 MPH and stop within 9 feet. Each foot over that you go you loose a point.
You line up at the same line, and you have to go 12-20 again and swerve either left or right around a 5 foot wide line 9 feet from the end timing line, depending on which direction the instructor tells you to do.
You get 5 points for putting your foot down, 3 point for hitting/missing a cone, 5 points for going out of the white lines on the pavement, etc. 10 points you pass, 11 you fail.
Amazingly I didn't get any points. For the cruiser bikes it's prety easy as they have wider steering locks. On sport bikes though, it's a pain especially for the cone weave. I just practiced the cone weave and U-turn 2 days before the test, and I was fine.
It really does seem to be a good indicator of skill. The people that weren't familiar with their bike didn't pass. The people that were familiar with what their bikes could do passed. You could easily tell which people needed to ride more than 100 miles before taking the test.