Ok, if they are showing up in the tool (i.e. on-screen), but, not in-game, I'd try using the XFPS directly and see if it works. Either with a M/K hooked up, or, with a PS2 controller connected. Let me know the results of that.
Yes, please try it out in another game. The locations of the sticks in the bit fields passed the XFPS aren't such that I'd be suspicious of data corruption.About the little black wheel: these Toolstick daughter cards are demonstration/prototyping boards. That means they include various parts hooked to pins on the microcontroller so that you can try out various features of the microcontroller without needing extra parts. In this case, the wheel is a potentiometer (variable resistor). There are also LEDs you can light up and switchs that you can interface with too.
About the little black wheel: ....
I belive in the manual it says the pot is on P1.6 ...
Yes, please try it out in another game. The locations of the sticks in the bit fields passed the XFPS aren't such that I'd be suspicious of data corruption.