[ChickenLiver]

Your binding's completely messed up. You have up and down bound to the same thing, effectively canceling each other out.. First, delete your old ini. Go into LilyPad's config screen and leave multiple binding diabled. Bind the buttons as before. Then press, in LilyPad: Vertical axis under left-stick. Then press your left analog stick up. Press horizontal axis,also under left stick, then press your left stick right (or left. Doesn't matter). Then do the same for the right stick. Then press D-pad vertial, and press your d-pad up.

Do not touch the up/down/left/right buttons in the interface. Those are for binding buttons, not binding axes. The first line of the troubleshooting section, at the top of my post, says, in bold, to use the axis buttons to bind axes. Don't know how I could make this any clearer.