@big_denim: I found the d-pad to be the way to go pretty much 100% of the time, largely due to the accidental wrong direction stuff you describe. I have found this problem to be even worse with the elite controller, presumably on account of its heavier stick.
I will say though that this is definitely not the only game that I've had this issue with, and that I love this game even though I haven't beaten mr king dice yet (waiting to have time with my co-op partner).
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