Yeah, as I suspected - it wasn't a wii mote issue - it was a "first time gamer doesn't know get all about buttons" issue. I was doing it wrong. BBZZT! Thanks for playing.. we have some nice parting gifts for you.
So my friend's 16 year old son came over and showed me how to do it. He hasn't played Bully but he figured it out in about 2.5 seconds as I suspected he would.
The answer was simple: You have to push C & Z at the *same time.* I was pushing C then Z. The one time I managed stuff a kid in the locker, I probably accidently hit them at the same time, not realizing I had done it.
After he showed me, I can now do it amazingly well. Thank you so much for the nice replies, everyone, that was driving me completely bonkers and I am grateful all the help.
Also, because he was just so darn nice about it -- after he showed me I offered to buy him the game of his choice (I can afford it) and he was all.. wow, are you serious? Any game? So he immediately picked Red Dead Redemption, no hesitation. It looks like a great game - too bad it's not made for the Wii.