Found this on another forum:
Quote Originally Posted by ElArabDeMagnifico
If you're having trouble with the aiming (ie wild acceleration and huge deadzone), try changing the cross color reduction filter setting on your PS3 (it's under display options on the XMB). If it's off, turn it on, and vice versa. I tried it and the controls vastly improved.

I had given up playing the game; constantly fighting the controls ruined it for me. But the issue is more or less solved now. It's a night and day difference. All of a sudden I see why some people swore there were no control issues.
http://www.escapistmagazine.com/forums/read/7.93023