Specifically, I recommend you play this game with a wired Xbox 360 controller. I actually dug out my old CD and got it working under DOSBox a while back and found that the 360 controller worked great.

Well, I use the analog sticks rather than a D-pad and it feels at least as good as my old Thrustmaster joystick.

How do you configure Dosbox to work with the 360 Pad? Does Dosbox recognize the pad automatically?

Does Privateer use so few buttons that it would fit on a 360 pad?

That's one reason I have a flight stick - so that in flight sims I can have one hand on the keyboard at all times. I can't imagine playing Tie Fighter with a gamepad.

I use a PS3 controller in XBox 360 Mode and it works fine. You do have to hit the keyboard occasionally for locking targets etc, but you can fire guns and missiles, hit afterburner, roll etc with the gamepad. If you don't have a joystick and your option it between a gamepad or a mouse/keyboard, take the gamepad option. It's far better. :)

I played all the Wing Commander games with the keyboard cursor keys as a kid/teen. I never had the money to get a good flight stick. I became so good with the arrow keys, that I will never play a Wing Commander game with a mouse or joystick again. I guess I am weird, but I love playing WC with the arrow keys! :)