Hey sirloin. I had to RMA my first X-52 because the mode switch was D.O.A.
I also use my hat switch as flaps & to shift gears in GV's so it sees a lot of use & mine is just fine.
So do this brother, if you have XP - go to control panel - click "printers & other hardware" - left click "game controllers" - you should see the X-52 listed, highlight it & click the "properties" tab
This will bring up a "diagnostis" type of screen.
Now move the mode switch through it's settings, if you see the red indicator light move in conjuntion with the switch (if the light matches the actual position of the switch) the switch is good, if you don't see a light, the switch is bad.
Do this & let me know what you find please.