That's basically what I did, but as soon as I use any of the axis all hell breaks loose.
Is it possible that this happens because I have multiple joystick controllers connected? I read somewhere that only 1 controller is supported.
Yes, that would be the most likely problem. I have the X55 rhino and have to unplug my throttle.
Later builds of the game support multiple controllers but I'm afraid we have to wait until official beta.