have you tried calling KE tech support the # is in the instructions,also there's help at www.knifeedge.com when I had trouble getting my G-3 up and running they helped out alot,if you have the basic G-3 youcan also download the upgrades for that version for free along with a ton of planes.
I had the G-2/nextar sim which worked fine on my comp. but when I got the G-3 my vid card was not enough to run the better sim 85$ later and a invidia 6800 card and it runs great as for the controller I don't think there compatable.