Hello, your example is basically how you would do it.
Taking the sample code from this site, to move the effect around with the mouse you could do:
'Load the effects library
Local MyEffectsLib:tlEffectsLibrary = LoadEffects("effects/examples.eff")
'Create an effect and assign it an effect from the library
Local MyEffect:tlEffect = MyEffectsLib.GetEffect("simple explosion 1")
'Create the particle manager to manage the particles
Local MyParticleManager:tlParticleManager = CreateParticleManager()
Graphics (1024, 768, 0)
'These commands are important to set the origin of the particle manager. For this example we're setting the origin so that
'effects will be placed at screen coordinates. If you leave out the setorigin command then an effect created at 0,0 would
'be placed at the center of the screen.
myparticlemanager.SetOrigin(GraphicsWidth() / 2, GraphicsHeight() / 2)
'This will make one frame equal 33 millisecs long - or 30 updates per second.
'Create a tweener using the tweener mod. Make sure its frequency matches that above
Local Tweener:tTweener = New tTweener.Create(30)
'Our main loop
While Not KeyDown(KEY_ESCAPE) Or AppTerminate()
'to create an effect you need to use the copyeffect command, and copy the MyEffect you created earlier.
'You shouldn't use MyEffect as it is the template
'for which is used to create effects you draw on screen.
Local tempeffect:tlEffect = CopyEffect(myeffect, MyParticleManager)
'Set the temp effect to the mouse coords
'add the effect the the particle manager. Important, otherwise the particle manager would have nothing to update
'here is the timing code, update the tweener to get the number of ticks for this loop
For Local Ticks:Int = 1 To Tweener.FrameTicks
'Update the execution time for the tweener
'Update the particle manager
if mouseeffect mouseeffect.setposition(mousex(),mousey())
'and finally draw the particles.
That’s just a very rough example, but is basically what you’d have to do. You can also download the vaders source code from the downloads page for some more insights, for example the bullets are effects that are moved about the screen.