Yes, it still gives people headaches because the convergence-accommodation conflict remains unsolved. We have a few different technologies to address that, but they're expensive, don't fully address the issue, and none of them have moved beyond the prototype stage.

Motion sickness can be mostly addressed with game design, but some people will still get sick regardless of what you try. Mind you, some people also get motion sick by watching a first-person shooter on a flat screen, so I'm not sure we'll ever get to a point where no one ever gets motion sick in VR.