I found this on the Microsoft support site. It says there is a Game Controllers icon. Perhaps Win7 does not think it is a game controller. Check under Device Manager and see if it has a question mark "?" next to your controller. -- ggunners
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Before you use the controller or joystick with the game, make sure your joystick or other controller is:
1. Plugged into your computer.
2. Enabled in Microsoft Windows 7 Control Panel.
3. Calibrated properly.
To calibrate the controller, follow these steps:
1. Make sure to connect the joystick or other controller correctly to the computer. Check connections to determine that they are not loose.
2. Click "Start." Select the "Control Panel." Locate the "Game Controllers" icon and double click on it. Highlight the controller that you wish to calibrate from the list. Click "Properties" for the same.
3. Click the "Test" tab at the top of the Properties box. First test your controller to make sure it is working.
4. Choose the "Settings" tab on the "Properties" box. Select the "Calibrate" button. Windows launches the Device Calibration Wizard at this point.
5. Work your way through the steps of the Calibration Wizard. Follow the directions and press "Next" when you complete the directions.
6. Center the controller. Press a button without touching the controller. Next the Wizard asks you to move the controller in all directions to calibrate the x-axis and y-axis of the joystick. Push a button on the joystick once more. Your computer can now calibrate the full range of motion for your joystick. It also knows where the center point is.
7. Uninstall the controller and reinstall it if the calibration process doesn't work. Repeat the steps to calibrate the controller/joystick
Refer the link below for more details on installing a game controller:
Install a game controller
http://windows.microsoft.com/en-US/wind ... controller