That is how the game was designed. When you use a keyboard with it, "Enter" is the only that gets you past the menu, but when you use gamepads, that action is no longer hard-coded to the keyboard and you can past it with the gamepad button you assigned to "Hard Kick / Select" function. It is for this reason that I decided to use the xbox gamepad emulator posted in the stickies, even though the game supports keyboards. My panel also uses a keyboard encoder. The emulator is painless to set up and works great.
Good luck.