1. first of all, you can try to delete (rename) EECH.INI, run the game and check if issue still exists
2. POV buttons should be attached to same device, as cyclic axis
3. POV and mouse always controls different things - like EO controlled by mouse, view - by POV, or vice versa. you can use middle mouse button to switch between modes.
also you can try to check these INI values manually:
msls=15
unbind_jbuttons=0
msl=3
TIR_idle=1
if nothing of that works - it some sort of code incompatibly with joystick drivers. maybe I can try to add some exceptions special for you, but can't promise that will end well.