Hi. I've got a Macally iStick also. You might want to try(if you haven't
already) USB Overdrive (
http://www.usboverdrive.com). It is better than
using Macally's own USB driver and it allows you to set the sensitivity of
the joystick which seems to be the problem in your case. USB Overdrive also
performs continious recalibration of the joystick even during play. While
the iStick was unusable before in Marathon 2, since I started using USB
Overdrive it works great with the exception that my iStick tends to
decalibrate i.e. moving it backward makes it move forward sometimes. Has
this problem occured to you?
Hope this helps.
(If you use USB Overdrive, remember to disable the Macally USB driver in
Extensions and probably export the game settings from the iStick Manager so
that they don't conflict with USB Overdrive's settings. But do not disable
the Macally iStick InputSprocket.)