You need to hook that PS analog stick to an actual analog arcade stick. This is the only way to make it work this way properly. Analog arcade sticks are very rarely used and very expensive, so I doubt that anyone has really tried. I've thought of it but know that I'd have no use for the expensive joystick.
That's not what he's trying to do... but it's not your fault... all the pics in Motorfishes project announcement post have gone fishing...
Motorfish gutted the joystick crash linked to and made a little "nub" (sorta like the trackpoint sticks on IBM notepads) for either navigating or playing the occasional analog game (I forget which) Was a pretty neat idea and execution of the idea by Motorfish (especially how it worked in his theme/art)
crash you can use any momentary pushbutton switch as "buttons" for functions on your cabinet. I use a momentary pushbutton which is found in the doorbell asile of homedepot to switch on my ATX powersupply/PC/mobo in my cabinet...
*shrug*
rampy