Sounds like the exact same issue my friend was having.
Does your LCD thingy on that get goofy? (sorry don't know how else to explain it)
I would recommend contacting Saitek it sounds as if you may have one of the bad batch .
You may try to uninstall all the Saitek software, make sure you get rid of any program files and the like.
Then to reinstall plug in the stick, insert the CD but don't let it autorun cancel the install.
You should get the Windows New Hardware wizard, if so install the drivers from there, Windows should find them on the CD if not direct it to the drive the CD is in.
This should install only the drivers needed for the stick.
If you don't get the Wizard use Device Manager, locate your stick and updat the drivers there.
Now doing this may prevent you from using any of the programming software, I don't know but may be worth a try .
This is the process I use to install my printer drivers without all the fluff HP would install via the CD.
If this procedure works you should be able to explore the software CD, and find .exe files to install only the features you want there. (in other words don't allow the CD to autorun)
Hope this helps without to much confusion
