Hi Dee,
We had some difficulty with the Infared (it seemed very directional)… only when we pointed it back toward the wii remote then it started to work well (using the reflection off the screen or wall didn’t seem to work as cleanly as the videos we have seen). Is this because of the choice of infared transmittor we are using?
it could be that your infrared pointer isn’t bright enough or too far away from the Wiimote (when using a large screen). Have you tried this with a smaller screen, like a notebook display?