Sounds like your PS1 PCB is defective. It could be a flook. Double check your wires again. Did you solder, or did you do the solderless hack? For future reference, I'm sure you did it, but always plug in your controllers and make sure they work before you hack them. That way, you know ahead of time the PCB is ok. Sometimes when you buy used PS1 dual shocks, you never know what the previous owner did to it. I have found juice stains on PCB's before. I've heard of people hacking controllers, and the PCB suddently stopped working. You may have to hack another PCB, just to make sure it's not your PS2.
One more thing, if you crossed a wire, the directional probably wouldn't work at all.