Actually, it doesn't work.
I setup everything to the diagonals and it does allow you to map up, down, left, right to a diagonal position, the problem is that it only works as a 4 way joystick when you do this. The true diagonal position on the joystick don't register since the up/down/left/right are now multi-sequence inputs.
For example, up is really up/left and left is really left,down. So what would half way between left and up be?