Rather than try to post this in each of the threads on this board about TrackIR not working in CFS3/OFF/MAW etc., I decided to just make a new post.
I'd had the exact same problem as everyone else, I read here that apparently Setpoint was causing a problem, but rather than uninstall, I just closed the tray icon for it, and now TrackIR works in-game.
I'd suggest trying this - and/or making sure that the setpoint.exe process is killed in Task Manager - before actually uninstalling the software or the OS.
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Thanks GregP, your post is by far the easiest way to discover a fix for this issue. It's a pain in the neck, but it certainly fixed the problem for me.