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Played with Vive wands again and no glitch this time. So it might be the issue on the Oculus controllers or just Virtual Desktop itself.  I do notice that the "HandVelocity" on Oculus Touch is generally higher (and less "realistic"), so if the physics relies on it you might want to take it into consideration early.  

Thanks for the info!
I guess setting up Rift compatibly involves a bit more than installing the SteamVR plugin. No surprise there. I'll make sure to update the game description to reflect these the Oculus issues.

You're absolutely right, hand velocity plays huge part in the locomotion system. So this very well might be the issue.

Glad that you've got it working one way or another.
How was the gameplay anyway?