I present to you, the solution to all your troubles. Finally we have red steel controls that are glitch free...
And the culprit? the sound from the speaker. In fact, turning the speaker volume off will fix your problem!
Note: as the forums indicate. Rumble actually has no effect on the cursors jumpiness. I'm speculating this is because the speaker was such a last minute addition that proper testing wasnt done on ubisoft's part. The lack of issues in zelda makes me confident that this isnt an issue w/ the wiimote tech.