tervel: Just got Terminal Velocity last week and was wondering if someone can possibly recommend an inexpensive joystick or other controller that will work with the game in Windows 7. Thank you in advance for anybody's input on this.
As far as I can tell any joystick should work fine with the game. DOSBox will automatically set your USB joystick up pretty much correctly. Only two things I had to do: GOG's configuration for Terminal Velocity is using the "timed" setting - TV goes crazy with this one on so just set it to false and you're good to go. Additionally if you wish to use throttle control you will probably have to remap it with DOSBox' "mapper" program (which you can run via CTRL+F1).
As for joystick recommendations - I can only give an anti-recommendation for now. I bought the Speedlink Wasp² for approximately 12€ which is kinda okay but the deadzone is a little too big (at least if you install its official drivers) and doesn't allow for good precision aiming. I may ask my brother (who owns like a dozen of sticks) for a recommendation if you're still looking for one.