i have your exact model of joystick.
have you calibrated it? if not, go to control panel>game controllers>Microsoft Sidewinder Precision 2.
click properties
in the tabe, click test. hit all buttons, move throttle, and move joystick in all directions (as well as a working rudder) the arrows should do to the ends of the screen when joystick is moved to max positions.
if that is working properly, then it is most liekyl a software issue.

ramos