There are no control problems with Red Steel. Only with the player.
First off, yeah you gotta put the sensitivity to low first, and gradually move it back up as you get more used to how persice (and awsome) the Wiimote is. It's the same "problem" that Metroid Hunters had, where it was ackward for a few hours of gametime before getting really really awsome when you get used to it. And now when Metroid 3 comes out, everyone's gonna love it because they got used to FPS on the Wii with Red Steel. Red Steel is awsome, it just takes time.
Oh yeah, position of the TV, sensor, and player are pretty important. I'll admit I was disapointed my first half hour or so of play, until I took a few steps back and began pwnageing.