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I work for a gaming company here in New Zealand AV8R so I have a preview copy of COF.
Maybe you should ask Halstead to send you the latest beta of the software since that seems to work fine for me in FS2002, and solved all my problems, which seem to have been the same as you have been experiencing. Im not too sure when the latest version will become official, but I do know there is testing still going on. Hold tight mate. Hopefully you will have a solution very soon.

Grover et al,

Good news...

The beta version of TrackIR software that is currently being developed solved the problem of it not recognizing and working in the 3D cockpit of MSFS2002. Funny how we got this resolved on the days before MSFS2004 becomes available.

So I recant all my customer service (or lack there of) statements for the record. They redeemed themselves in a big way. Hopefully we will all benefit in MSFS2004 from what was learned with MSFS2002.

AV8R

You should like this then. Ive spent about 2 hours in COF beta and TrackIR has performed brilliantly