I figured it out.
Yes, the clutch must be disengaged. But I also found the following to be true...
Cannot use the slider for zoom in/out function. That is what locked up everything else for some weird reason.
Also, even though I JUST bought the X52 Pro, it was packaged in 2009 (software was). During installation, I thought I selected the option for update drivers, however, you have to MANUALLY go to Saitek's site to update the drivers. Gives you a whole new looking screen in properties.
If you haven't updated drivers in a while, I highly recommend doing so.
I am up and running. Thanks again for all the help guys!