I have found essentially the same problem with a Wingman 3D stick.
I set Roger Wilco "Key Mic"" function to use either the T or the F12 keys, and the the action I got was to mute all game sounds unless I hold the key down. COnfusing.
The Joystick button mapping feature did not semm to carry across to Roger Wilco. I set Button 5 on the Wingman to be "KEY MIC" yet it had no effect.
I am using a 400 MHX Celeron, Win 98, DirectX 7.0a, and the newest Roger Wilco.
does anyone have a step by step checklist that will work through setting a button on the stick to key the mic??
Thanks!