Steen,
RC Heli Sim has an utterly crappy code for axis detection... With a USB interface from
www.milehighwings.com, it takes several attempts befor the sim picks the right axis. When you move a stick in, say, vertical direction, there's always a small horizontal movement component (because you can't move the stick perfectly vertically), and the sim picks whatever signal it sees first (in this case, horizontal movement) without comparing the magnitudes of several visible signals. One way to get around it is to try moving sticks several times until the correct axis is detected. The onther way is to manually edit configuration file. With every interface purchase, milehighwings sends a CD with a detailed description how to overcome this RC Heli Sim problem.
One thing that looks suspicious about your interface is that "use my hitech laser 4 as a mouse for my computer". A joystick interface should not report itself as a mouse! May be this is the reason that the simulator doesn't detect it. Milehighwings interface reports itself to the system as a USB joystick, this works with all simulators including RCHS.
Boris