Well, there is no problem with a shaky pointer, and there are no obstructions or whatever. I'm pretty sure we've got the settings right, too - we set up the Wii together, and tried both positions (on top & below) with the correct settings.
it's a bit subtle, but you can try it with two people: One of you holds the Wiimote so that the pointer is in the center of the screen, and the other looks from the side - you'll notice that if you draw an "invisible extension", the Wiimote is actually pointing at the sensor bar, not at the center of the screen. Or maybe not, but it was the case with our system.
About the lag: It was very noticeable, made me play much worse for a few minutes, then I got used to it. Gotta say that I'm very sensitive when it comes to latency issues; must be the years of making music with Logic Audio and software synthesizers.
Currently playing: NSMB (Wii)
