Maybe try changing 'paddle_device' and 'dial_device' to 'mouse'.
Nah, that does the same thing. (differences not important for this thread, unless anyone's curious.)
OP, I'd make sure -multimouse is still disabled (0). If that doesn't help, try remapping: tab, "Input (this game)", scroll down to "dial analog", press enter, spin wheel, wait and see if it's mapped. (If not, try different spin speeds.) IIRC, you said the wheel works in windows, or am I confusing with a different person?