I highly recommend you keep trying this when you first get to level 11 until the achievement pops, as that's the most time-saving way to earn the achievement. Just go back to the dance platform and hit the prompt to start the dance. On your subsequent tries, if you mess up you can just back out (I think with the B button) and try again. The great thing about this achievement is that you can try again as many times as you like but you MUST complete the dance the first time to have the option to try again (thanks to Scuderia NL for the clarification). You will get the feel for it really quickly.
Instead what you want to do is make sure the letter hits the circle first and you will see it pause for just a quick millisecond, which is when you want to hit the button. Your natural instinct will be to tap the correct button as the letter is approaching the circle so that it hits right on target (like in Guitar Hero) but this isn't the way to get Awesomes.
There are 21 moves in this dance game, so you not only need to hit 100% of the moves, but you need to get an Awesome (versus a Good or Cool) on each move as well.
After you have done so, you will have the opportunity to do the Kragelizer dance mini game. At the beginning of level 11, "Put the Thing on the Thing", you will be in a room where you need to collect construction plans and build a loudspeaker.