We're on opposite sides of the same mirror, I can't play the demo because it only allows 3DFX but tweaking the ESC-pulldown menu of the full version finally got me 'sufficient' lateral control to be worth it (reminds me a lot of Tornado where you get better cruise in autopilot and 'the view is better' in TRA-lo...;-).
I've got the dead zone set at about 1/4 and the X/Y at about 1/3rd and the rudder also about 1/4.
Rudder is still overcontrolled though the onset rate of response is better and now the only really nasty problem is in the takeoff and landing segments (SLS flat, don't try doing a tactical overhead with a short downwind) where I still get so much yaw drift that I end up overcontrolling with aileron as a preference.
That damn rudder is just a pain to manipulate in capturing the centerline and I always seem to forget that the autopilot steals the throttle setting which means cranking up the nose while the turbing spools from slow to full blow.
Taken together, this in turn causes you to 'waddle' on the backside of the powercurve where a reach for the sky act can drag the aft end. On the X-32 especially you have to grease it just right or you get a 'Damage! Damage!' from the female nag in the VOCOM.
Don't wait too long to go around. If you aren't careful the oversensitivity can have you jamming up both axes into PIO and driving the plane right off the glideslope or even the concrete.
The only solution is to slam it back into AP or hit L/evel and go around again. Takes a lot of guts to put the gear up when you've still got negative verticals and P&W are still whipping the rodents so a TRA poweron climbout will save your behind.
Clear as mud?;-)