Does the logitech gamepad work ok for you when your running? I dont know if we have the same controller but for some reason when im running if i start going at a diagonal angle it makes me stop and then walk for a few seconds. It kinda sucks because it completely ruins the controller play for me :(
I was seeing this issue with the Logitech gamepad as well. Basically, movement in any one of the four orthogonal directions (i.e. forward, back, left, or right) was at running speed. When I tried moving in a diagonal direction (e.g. forward-left), my character slowed down to a walk. This wasn't a physics issue either, because my character stayed at walking pace with the toggle at a diagonal. I then switched my gamepad to a Madcatz, and can run with the toggle at a diagonal.
Also, with the Logitech I noticed that movement was all or nothing. Whether I slightly pushed forward or pushed all the way forward, my character would run. With the Madcatz, movement was pressure-sensitive. With a slight push forward, I would walk. With it all the way forward, I would run.
Not sure if it's an issue with the controller, or I just didn't set-up the Logitech right.