Same here. i read on other forums (inculding xboxs offical) that users or madcats controlers and wheels along with some other controler manfacturer in the states may have problems. mad cats have released a patch
MS released a patch last week in preparation for the Dashboard update that had a bug in it that affected all sorts of FFB controllers from all manufacturers. Yesterday they released a fixit patch for the update that appears to have corrected the problems.