Your joystick can absolutely make a difference. I started with a PS1 controller and adapter, but quit using it after reading that the adapter introduces quite a bit of lag. It's tough to tell, but I think that it made a difference switching to a pc controller. If I didn't already have too many controllers, I'd just bite the bullet and track down one of the Sega Saturn controllers + adapters. We can put a man on the moon, but nobody can seem to make a half decent D'Pad anymore...
Apart from the ricochet, do you ever have the receiving player seize up on you? It happens a lot where the receiving player seems to freeze halfway through the one-timer animation for me.