There are lots of people really playing it online?

I've struggled with the same issue.
For me, I think it's all dependent on which weapon you're using.
If you use a shotgun, you have to get ridiculously close to hurt someone.
Otherwise it's all about bursts to the head.
Still love the game.

 Every time I have gotten on to play, the lobby is quite full.  I am surprised but it seems that there are a lot of people that are playing it.

This sounds like bad hit detection and lag, during many shitty online games they lag, CoD4 is an example of a bad game on the consoles, you can shoot guys well over 20 times and they don't die, even point blank on a non moving targets and they don't die. While other games like RFoM on the PS3 has about zero lag and your shots always hit perfect.

Most times the servers are not made to handle too many people on at once and they crash, while other gamers have alot better servers that never crash and fuck up.

Sounds like they're lagging.

Is there anything on my end or is it just something that I will have to deal with?

I would buy that game DAY ONE if it had real multiplayer and by that i mean split screen.

The technical term is; 'you're crap at it' :P

Same as me with online shooters, takes me about 5 seconds to line up my crosshair to get any sort of body shot at all and by the time I have they've already got a headshot in and killed me in 1!

I'm hoping to be a lot better when I get MOH:Heroes and use the Wiimote online.

Three words:

BOOM...HEAD SHOT!

They kill you faster cause they got you in the head.lol.

In fact,im the best at this game.

BOOM,HEAD SHOT!

I think it's lag mate.
Can you check your ping the next time you play.
Everything above 50 ping is really annoying (personally i wouldn't play above 30 but ok).
Also check the pings of others as they can lagg you and the server (above 150 ping another guy and you know you are going to experience some too)Try to play officieel servers (do they have that with this game?) and try servers that aren't so crowded:)

If all that doesn't work then there are two explainations left:
1. You suck
2. The game has awful (upload)rates

Hope this helps good luck!

Slash

 Tip: Get to know your weapons: shotgun is for close combat and with machine guns you shouldn't spray (keeping the finger on trigger button) this really opens up the reticule and makes you aim way off. Fire moderate bursts at a time and wait till the reticule gets tiny again.