It isn't necessary to alter the .ini file to make the analog controller work. I hope you saved a backup of that file, as you could predominantly screw up the game... or even your computer.
Anyway, on Analog controllers there is usually a "Mode" button or similar with an LED indicator (such as my SteelSeries 3GC). By default, the right analog stick is set to control the 1, 2, 3 and 4 buttons directly above that stick (acting as a "second" D-Pad [the directional pad to the top left] if you would). After "toggling" this, by pushing the "Mode" or similar button, you should then be able to control the right stick without issue.
If not, go into JoyToKey and click the "others" tab. Select "Use Axes other than X and Y" and also "Use POV switches" and return to the "Joysticks" tab.
Set it up as per:
AxisX(<0): A
AxisX(>0): W
AxisY(<0): S
AxisY(>0): D
Axis3(<0): Mouse: Horizontal (-65)
Axis3(>0): Mouse: Horizontal (65)
Skip Axis 4 - 5 (disabled)
Axis6(<0): Mouse: Vertical(65)
Axis6(>0): Mouse: Vertical(-65)
The first Axis configurations (X andY) are for controlling the LEFT directional stick, while the second Axis configurations (3 and 6) are for controlling the RIGHT directional stick. Note, the higher the number of the scroll value (i.e. 65) means it goes faster. Feel free to tweak that to anything between 0 and 100 as you see fit.
The way you configure Axis 3 and Axis 6 is to simply double-click on the Axis 3 and Axis 6 spaces and then and select the "Mouse" tab and use the sliders to the settings above.
Now, onto the in-game settings:
Launch Oblivion. Click “Options”, “Controls” > “Controls” (to the left ). Now you will see at the top it says “Keyboard” with a left and a right arrow. Click the right arrow, it will now display “Mouse”… click it again, and it will say “Joystick”.
Double-click on any control you want to set for any which button, it will tell you to press the button on the controller you want to set it too. Volla, everything works.
Here is my buttons configuration (using BOTH in-game and JoyToKey):
IN JOYTOKEY:
AxisX(<0): A
AxisX(>0): W
AxisY(<0): S
AxisY(>0): D
Axis3(<0): Mouse: Horizontal (-65)
Axis3(>0): Mouse: Horizontal (65)
Skip Axis 4 - 5 (disabled)
Axis6(<0): Mouse: Vertical(65)
Axis6(>0): Mouse: Vertical(-65)
Skipped Slider 1-1-2-2 (disabled)
Skipped POV 1-2 (disabled)
Buttons:
1: E
2: Tab (NOT configured in-game settings, so set it here)
3: Space
4: F
5: Z
6: C
7 :Alt
8: Mouse: Left - (double click, “Mouse” tab, to the left it will display left and right click and scroll)
9: T
10: Escape
11: CTRL - (NOT configured through in-game settings, so set it here)
12: R - (NOT configured through in-game settings, so set it here)
IN-GAME “JOYSTICK” SETTINGS:
Attack:------------8
Activate:----------3
Block:--------------7
Cast:--------------6
Ready Weapon: 4
Sneak:------------11
Jump:-------------1
Wait:--------------9
Quick Save (NONE)
Quick Load (NONE)
Grab:--------------5
With both of these settings, in game as well as with JoyToKey, the controller works as closely as possible to the settings of the PS3 console. (PLEASE NOTE, YOU HAVE TO MINIMIZE JOYTOKEY, NOT CLOSE OUT OF IT AND IT HAS TO REMAIN IN THE BACKGROUND TASK TO CONTROL THE CONTROLLER OR ELSE IT WON’T WORK!)
Also, you WILL still have to use the keyboard and mouse occasionally for certain tasks, even with these or any other configurations of settings but it’s better than being 100% keyboard and mouse dependent – especially during the fighting!
Hope all of this helped…
EDIT:
is there a way to use the pad to make mouse pointer moves so I do not have to switch between the keyboad and pad?
If you mean getting the right stick to work, then yes. See above.
Also the 1-4 (x,triangle, sq, circ) secondary actions do not work such a drop item?
And they never will. This is not PS3, this is PC. PC games by default and design are meant to be played strictly with the keyboard and mouse. It sucks, but that's how it is.
However, to drop an item SHIFT+Click. The game is paused anyway, it is a pain in the rear, but again, that's the price you pay for PC gaming.
r2 l1 secondary buttons for buy sell do not fuction?
Again, this is PC Gaming. PS3's are specially coded just for itself, no keyboards and mouses, just a standard little 12 button controller. To accommodate that, they use many different "maps" for that 12 button architecture and which the game designers then custom code in so that certain "maps" of those buttons go into effect under certain "screens" of their games for just such a reason, allowing each button to have different functions under those many different "screens".
PC Games don't get that extra TLC for controllers, because most PC Gamers like to do things the hard way with the 112 key keyboards leaving all of us who do prefer console style gaming on our PCs, to fend for ourselves and get it as best we can albeit at only 70% full console control functions.
However, for SOME functionality of "scrolling" between those different screens, go ahead and set BOTH POV settings in JoyToKey as:
POV1: UP-------- Arrow Up
POV1: RIGHT----Arrow Right
POV1: DOWN---Arrow Down
POV1: LEFT-----Arrow Left
POV2: UP--------Arrow Up
POV3: RIGHT----Arrow Right
POV3: DOWN---Arrow Down
POV3: LEFT------Arrow Left
AND go into the "Joystick 2" tab and set:
Axis3(<0): Arrow Left
Axis3(>0): Arrow Right
(SKIP AXIS 4 - 5)
Axis6(<0): Arrow Up
Axis6(>0): Arrow Down
And one of those (can't remember which) will allow you to use the joystick to filter between the menu screens, but you will have to press the "Activate" button (spacebar on keyboard, 3 button on controller) in order to switch it.
Again, it sucks, but it's better than nothing at all...