There is a problem with the Saitek control manager which can only be fixed by editing the Windows registry. It has to do with axises not being able to move through the complete range of motion/calibration issues. Once in this mode, it cannot be undone (even removing the control manager software does not fix it), without a registry edit.
The following comes from Saitek.
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The axes on my controller are not travelling through their full range of movement or centering correctly, how do I fix this?
If you ever experience calibration issues with your controller then the following procedure should resolve it.
First of all, unplug your controller.
XP Click Start and select Run, type regedit and click ok.
Vista/Windows 7 Click Start and type regedit into Start Search, and click the regedit icon that appears.
The Windows Registry Editor will open on your screen.
You will be presented with a folder tree,
clicking the + (XP) or > (Vista/W7) next to the folder name to open the folder and display all the folders contained within. Open these following folders in order.
HKEY_Current_User (HKEY_Local_Machine if using XP)
System
CurrentControlSet
Control
Media Properties
Private Properties
Direct Output
Delete any folder inside the Direct Input folder that begins VID_06A3
Once deleted, close the editor, and then reconnect your controller to your USB port. Move all the axes of the controller through their full range of movement four times.
Now test the axes on your PC. If this does not resolve the issue then, if possible, test the controller on another PC to see if they do the same thing. If the issue is consistent across two PCs then there may be a fault with the controller and it will need to be replaced.