There is a massive delay in teleoperative mode between when the controls are adjusted and when it responds. It has this delay over bluetooth and USB connection.

Does anyone else have this problem and what should i do about it.

FIRST, LEGO, PITSCO and HiTechnic know about and are working on it. They'll post something as soon as they figure out what is going on.

NOTE: This problem is common to all the programming environments -- ROBOTC, NXT-G and LabVIEW -- and not unique to NXT. THere is lots of work underway on improvements.