1) fire button still not recognized by game. Windows sees it but game doesn't. Value in mame is
. . .
P1 button 1 none
Highight the input you want to change. Press Enter then ESC -- repeat until the default settings are restored to these two.
Did you try to return button 1 to the default setting?

2) up and down controls are fine but reversed?
Step oneIn windows calibration, if you pull the top of the handle toward you and the cursor moves down, it is working normally.
If not, you need to swap the wires on tabs 1 and 3 of the potentiometer to reverse the axis.
Step twoIn Star Wars, if you pull the top of the handle toward you and the nose of the X-wing goes up, it is working normally -- just like flying an aircraft.
If not, go into the analog menu and change the "AD Stick Y Reverse" setting.
And left /right controls are wonky and not very responsive. Seems to need calibration or something.
If it is not moving smoothly in the windows calibration window, you may need to either fix a poor/intermittent connection or replace the potentiometer.
You may also want to mess with deadzone, sensitivity, etc. settings.
Star Wars will auto-calibrate, if you turn the yoke to its furthest positions a few times.
Scott