I had similar problem in WC1 and WC2 using a Quickshot joystick (now I'm showing my age). Nothing worked tried cleaning the contacts inside the darn thing nothing worked. I had to finally breakdown and buy a good joystick. I bought a thrustmaster has worked great.
Just thought of something, Is your joystick connected through your soundcard's midi port. If so you might be having a conflict there. I do not have one but I've heard an adjustable game card will solve a great many problems.
Haven't stopped by here for awhile, but WC1 and WC2 for KS have known Joystick bugs that are exactly what have been described. AFAIK there are no known fixes, though since it is a problem with direct control it may work if DX3 (I believe that is the version of DX included with KS...) is used instead of a newer version. Just going for a long shot here...
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"Canadian and proud of it"-TC
You are in no way entitled to any WC games, if you don't have them its your own damn fault.