Mine's hooked up to a 52'' TV and the sofa is about 10' away. But that results in the cursor being blinky.

When I move closer to about 6' away, the cursor stopped blinking.

A quick google results showed that people fixed it by increasing the distance of the leds.

i.e. taping 2 bars together and blocked the middle leds.

So, for optimal result, is it best that I get 2 leds and just move the distance as I see fit depending on where I would be sitting?

Note that, when I played MP3, I didn't have the blinky issue with the ingame cursor.

However, it is quite annoying when playing Endless Ocean2.

Change the "sensitivity" setting?

Though you may have to do this frequently.

It does not get saved in the system settings?

It does. But when go to play a little closer, you have to set the sensitivity back to keep the previous precision.

you can use any light source (that has emits also in the invisible/red spectrum of the remote reciever)... people have used candles instead of the wii bar... Maybe using more powerfull leds would help you?

Otherwise, yeah sensitivity setting.... If I recall, you actually see what the camera sees when you adjust it, so you can evaluate the brightness and eventual Boggeys that may interfer with the reception (aka other light sources that could get picked up by the camera).