The control panel is located near the Missile Launch Bay's door. To pass this area of the game, you MUST set the missile error ratio at it's max. That's all I can tell you without giving too much away.
If you want to have a little fun, go to the "Equipment Inspection" area to see the equipment used by the Galbadia army. If you hold down both the triangle and square buttons, and press up or down on the control pad, you can see either an Elite Soldier, or a dancing Galbadia Soldier. That's some pretty funny stuff (and odd too....)
(If you need more help than that, see below)
Look Away if You Want to Solve it Yourself!
All you need to do, is select "Target" in the panel. Next pick "Set Error Ratio", and hold the right directional button until it is at it's max. BE SURE, SINCE IT'S VERY IMPORTANT THAT YOU HAVE THE RATIO AT MAX. Next, select "Data Upload", and then "Yes" to upload the data to the missiles.