Have you only done it with Bow-wow and at the beach? Perhaps you must have Bow-Wow with you... I haven't time to do "any" testings on this, I have tried another bug instead which I found around a year ago. I guess a couple of people know that you can get invisble. Hold Up, Down and Right and swing your sword. Voilá, you can't see yourself anymore. This effect goes out when you walk into a house/cave. This can come in handy, because Link is acting quite strange... Take a look at this movie:
http://dehacked.2y.net/microstorage.php/info/1332/Invis%20bug.vbm
As you can see I could reach the grass from there! I haven't been able to take an enemy on the same way yet, but I'm quite sure you can. By holding Up and Down at the same time will give make Link hold a shield, this can't be used what I know... By holding Up, Down and Left while carrying a rock will make Link get stock in the rock. You don't need Bow-Wow to do this, I have him because Chef Stef had it in his save file, and that you can easily see where I am.