I play it with my PS3 Hori Fighting Stick 3, works great :D

If you want to map the 360 controller's face buttons properly, you need to swap them a little

Circle = BUTTON2
Cross = BUTTON1
Triangle = BUTTON4
Square =BUTTON3

And, if you want to use the d-pad instead of analog, change the Up, Down, Left, and Right to be POV UP, POV DOWN, POV LEFT, POV RIGHT.

Ewwww, analog stick used in a 2d fighting game.

Works with my Logitech F710 in directplay mode. Will try it in xbox mode later (but should work also).

edit: works also in xbox mode

Screenshot is the settings for my 360 controller, properly configured. Some of this might be helpful for others.

Notes:
POV set to directions Up/down/etc.
Analog set to analog directions Up(A)/Down(A)/etc.
ZAxis checked so L2/R2 can be assigned properly to triggers.
Face and other buttons arranged correctly.

The analog (A) controls are disabled by default. To enable them, you will need to go into the in-game key config and set "analog" to "on". This will allow you to use the d-pad and analog stick for directional controls at the same time instead of only one or the other.

Not as Ewwww as you think, some controllers were poorly made with their stiff dpads so the analog stick can pull off moves better.

I'm using a HRAP 3 and a wii classic controller (with an usb-adapter for my laptop) and it works fine.

Good job! :)