Unfortunately, this is 'normal'. Microsoft hasn't figured out a way for us
to have multiple controllers attached, and manipulate them as needed. Sure,
it has the slots for all the controllers, but provides no RELIABLE way to
move them around.
And game developers (all of them, I think) that write their games to only
look at Joystick 1, instead of providing you a choice, don't help.
Developers - STOP THAT CRAP!
If you don't have the time to code it correctly, toss out your useless
copy-protection madness (that doesn't work anyway) and add some decent
controller selection code.
Codemasters - You REALLY need to go to school on this :)
-Larry