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You are right, the controls works as you described (both 64 and 32bit builds)... really dunno what happened before.  :

I use XBox models anyway.

If I can suggest something, instead of the "slower time" item, why not a "slow down the rival"?

Yeah, a number of people told us they don't like the slow-mo powerup. We were thinking about a slow down trap, which affects the bunny who picks it up, but you can kick it like the ball and sic it onto the opponent.