Handgun accuracy is controlled by two factors. Sight alignment and trigger squeeze. As long as the sights are properly aligned and you're smoothly squeezing the trigger the shots will be quite accurate. Make sure you're only moving the trigger finger when squeezing the trigger.
Your focus should be on the front sight, NOT the target. The target doesn't aim the gun, the sights do.
When squeezing the trigger make sure you squuuuuueeeeeeeeezzzzzzzzzzzeeeeeeeeee. Don't start with a squeeze and mash the trigger just before it breaks. Shots low and left toward 7 o'clock are indicative of jerking the trigger if you're right handed. They're low and right if you're left handed.
Recoil is controlled through proper grip. The pressure to hold the gun should be on the front strap of the grip. If your fingertips are white you're holding too tight which makes squeezing with only the trigger finger difficult.
Take a look at this video http://video.google.com/videoplay?do...2856867071363#
You'll find proper grip easily when the sights are naturally aligned 95% of the way when the gun is presented to the target.
Taking a high grip with the shooting thumb riding over the support thumb will also help control recoil.
By taking a high grip the bore axis is more inline with the wrist. This helps keep the muzzle down. Try taking a shot with a low grip. You'll notice much more muzzle flip than when taking a high grip. A high grip means the hand is as high as it can go without getting slide bite. The support hand will need to be canted down to near full lock of the wrist but not actually locked. The support hand thumb can sit slightly off the frame of the handgun near the slide release. You don't want to put pressure on the frame or you may prevent the slide release from locking the slide back when the magazine is empty.
If you're shooting a revolver don't place the support hand thumb near the cylinder or you can seriously hurt yourself. The above grip is used for semi-autos.
Don't lock your elbows but get a good extension. The elbows should be slightly bent so that they will act as shock absorbers.
Practice good follow through. Don't immediately look at the target to see where you hit. After the shot breaks and the gun recoils you should be back in your shooting position and be able to easily pick up the front sight when you're doing things properly.
Building your forearm and chest will also help in recoil control. If you look at a number of the good shooters you'll see they tend to have well built forearms. Use grip strength trainers and dumbbell curls to build your forearms.
When I was on the pistol team in college we'd always end training sessions by doing a few reps with one of these jigs. I don't think it's a coincidence the best shooters could do the most reps.
I occasionally teach the pistol marksmanship class at the U of U. Let me know if you have any more questions. I'm always happy to help fellow shooters.