Check the device setting. Calibrate the joystick. The systems needs to perform 4 measurements each lasting 2 seconds. If you press the calibration button the first measure will start and a popup window will appear after 2 seconds. Now press no button on the sonystick Now set the precision to 5.
Lower values make the joystick more precise, thus harder to control.
Configure the buttons. A beep indicates that an event was successfully recorded. Pressing the OK Button to save the configuration. Cancel will not save any changes made to the configuration. Finally you can enable the plugin in the XMMS preferences window.