My joystick has a hatswitch too, and what sucked is that it wasn't bound, so I had to bind all the individual commands.
Go to Settings and under controls->joystick, you should be able to look at all the available commands. Then you have to assign each hatswitch position (up, up left, up right, left, right, etc.) to each individual Camera Look Up Incrementally/Up Left/ Up Right / Left / Right / etc. (or something to that effect).
I don't have the sim open in front of me right now so I forget what the exact name of the commands are.