Clear up a few things - it is not working at all, controller is known good. It is not functioning as a mouse, or anything for that matter.
I can plug it in and it shows up on lsusb...
I have created the /dev/input/js0 node and that does not help, when I try to access it, I get device not found.
I have xpad compiled as a module at this time, I tried in-kernel too, all the same.
I am running kernel 2.6.32 - here is the conf...
http://pastebin.ca/1821421
I have yet to find a recent how-to / guide but I have been told the 360 controller is fully supported and I don't need any extra software.
I have no idea what might be going on...
Thanks!