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I backed up what I needed and started over fresh. Everything is working fine now. Thank you though.
Then my best guess is that it just isn't compatible.
You could try it on an Ubuntu Live CD on your PC to see if it's a problem with Linux in general or the Raspberry Pi/Kernel. (You can use jstest-gtk to test it).
I have the same problema with ps3 gamepad
Thanks for responding Buzz....ended up being a craptastic power supply.