1. Cuties are short range - they don't range far from home before dying. They can go for a good two or three minutes though.
2. Not very sensitive. You'll have to pretty much line up the Cuties like a standard torpedo, otherwise it won't lock on. Really, I just use them like that, the homing feature is kind of like insurance against evasive maneuvers.
They're difficult but fun to use, always a pleasure to see that stubby little thing flying along underwater