Board: M.U.G.E.N Configuration Help
The simplest solution: Set the movement controls to the Dpad, not the analog stick. Seriously, so long as the controller's plugged in and you set up the controls for it, you don't need to do anything else.
for some reason it cant detect the 360 dpad, but with that program you can assign the dpad to keys on the keyboard & that solves it



thats exactly what i needed!