Is your controller properly connected to your phone? I mean, does it show as connected in your bluetooth dialogue screen? And have you started it correctly? My iPega for example can be launched in four different modes:

– X+Home: Gamepad mode
– A+Home: Keyboard mode
– B+Home: iCade mode
– Y+Home: Bluetooth-SPP & mouse mode

(don’t ask me what the B & Y combinations do…)
Anyway: the gamepad remembers the last setting. So if I press “Y+Home” accidentally, it will stick to that afterwards when I simply activate the gamepad with “Home”. I’d have to do a full re-pairing with “X+Home” to correct that.

Maybe your gamepad has a similar functionality?