It's not just you. I have had the same issue with my 360 S. I have used the Harmony One, and the shorty and full sized media center 360 remotes and the IR reception is nearly non existent once I start to venture off the left of the system. I also have two friends that have the S and their...
Looks like Rival Schools with Tekken and Street Fighter characters. Project Justice was one of my fav fighters ever. If this ends up being remotely like that, I am totally sold.