So far I have tried this on 2 computers running all of Microsoft's OS's (XP, Vista, 7 64bit). Not sure if anyone has experienced this or it is just me. It seemed really odd.
Specs
Laptop -
Toshiba Qosmio x505 Q894 Windows 7 64bit
Desktop
Dual Core 2.4ghz 6 gigs ram 8800gts XP and Vista 32bit dual boot configuration
Both computers running the latest Microsoft Xbox360 accessories pack for controller support.
I cannot say that the issue lies just on the controller but i doubt it is. It is brand new and I played Dead Space with it on the laptop with no issues what so ever. Additionally I tried the controller in my 360 with New Vegas and had no issues as well. Doing a recalibration of the controller did not help either.
Any insight would be appreciated.