Following some reviews and a chat on the discussion board with supersmo, we've started to update the control system to better handle when you're pushing diagonal directions on your controllers. There's a public beta available to try it out, so you can let us know if it's good or bad or broken in some way.
If you haven't opted-in to a game beta before, here's what to do: right-click on Crazy Otto in your games library and click 'Properties'. Then pick the 'Betas' tab. There you can select the 'beta' branch to opt-in to. Although there's a password box, you don't need a password!
Once you've opted-in to the beta, Steam will update Crazy Otto with the new version, and then it's ready to go!