Problem solved. I disabled Multithreading and tried Vsync again and it works perfectly. It appears that if you have Multithreading and Vsync or Multithreading and Triple Buffering enabled at the same time it causes problems and lag with analog controls. Vsync or Multithreading on their own are fine, but not if enabled together. Multithreading is not essential as all the trackball games run full speed anyway.