Just a bump and acknowledgement. I'm having very similar problems with the same transmitter and USB cable. Also running Windows XP.
I'm able to calibrate all but the rudder channel...
TLU, can you please elaborate on how to ensure joystick 1? The device shows up as PPM[] ([] is a box representing some unprintable character). I only have this one controller connected to the system, so it is my default controller, and the only controller in the list.
Thanks.