@midd, I'm dealing with that same issue. Authentic Wiimotes > Dolphin Bar mode 4 > Vanilla Touchmote v10B15 and Demulshooter for non MAME.
The problem is that the virtual stick generated by the Touchmote does not reach the edges of the X axis range. I also realized today that moving away from the screen helps but you need to move really far to reach the sides to the point that it is no longer usable.
After spending the afternoon reading this thread I saw that there is a version of Touchmote forked by Tsoukkis in github that should allow you to trim/calibrate those edges to make it work.
Unfortunately it seems that the forked code is not the latest version and you need an old version of VisualStudio to compile it. There is a pre-compiled version that another member posted. I'll give it a try and see if I can make it work with Win10.
BTW, the developer of Demulshooter, is planning to release a new version in a couple of weeks that will enable support of Dolphinbar mode 3. without Touchmote. I'm very much looking forward to that. The only drawback is that you need to plug the nunchuck attachment to the wiimote to enable the IR sensor in mode 3. I have no clue as to why the Dolphinbar has that limitation.