I think I may have discovered a large part of the problem, although I'm not sure how to fix it.
First of all, the other USB device found is the attached USB mouse (when I run jinput-test.jar using the suggested method shown below)
java -Djava.library.path=. -cp jinput.jar;jinput-test.jar net.java.games.input.test.ControllerReadTest
What's interesting, is that I'm doing my development inside netbeans for now, in which I called the ControllerReadTest function from within my own main. When it launches, it too shows only my laptop mouse and keyboard. Similiarly, when I launch the automatically generated JAR file from double clicking it in windows explorer, the ControllerReadTest window pops up, but this time there are no controllers found. This must be related to netbeans?
I have the necessary .dlls and JAR files appended to the values in my main PATH variable. Do you have any suggestions, particularly for development in netbeans? There must be a link i'm missing. I added the file to the classpath and imported it as a local library (which worked, when adding it to the classpath did not).
Anyway, thanks for taking this up! I appreciate it. Look forward to hearing back