It's not a bug, they intentionally put the input lag there. I'm not saying the PS2 version is any better, I'm just saying, as much as I love the dreamcast version, the subtle difference between the two would the input lag, it's there, my controllers are fine. Maybe you aren't noticing it. As for the PS2 version, I don't notice any missing frames as much, but I haven't touched my PS2 since I got SF3, so I haven't done anything to it yet.