Immersion Touchware Gaming (ITG) software does work with the Xbox pad. I'll be making a post on how to get it up and running with an xbox pad real soon now.
Oh, and I'm running 1.07 as well, not a problem. I have a profile for ITG that works with the xbox pad. I'll post that up as soon as I've done some more testing 
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Ok, here's how you get your pad up and going with Immersion Touchware Gaming.
1. Go and grab ITG software from here. Note that this is a 30 day trial. If you like the software, buy it. Requests for warez/cracks for this software will result in the slapping of the requester with a large, wet trout. You have been warned
2. Obviously, install the software choosing either a custom or typical install. Either install mode wil do. I chose typical.
3. Once the install has finished, plug in your USB Xbox pad and run ITG software. Asjservs7 rightly notes you will be told that the pad isn't supported and that it may be possible to get the pad to work by creating a custom profile.
4. Choose your soundcard and the audio source of your preference. I have onboard sound (AC97) and I left the default audio source line at mono mix. You can use stereo mix if you like. I find that mono mix produces a slightly stronger rumble than stereo mix, however I suggest you try both and select which ever suits you.

5. The idea here is to configure the sliders one by one. The help file included with the program explains more. The sliders on the left relate to bass, and the sliders on the right relate to treble. The idea is to mute all of the channels one at a time and adjust the slider until you feel the slightest of rumble from that channel. If you set all the sliders to high then your pad will most likely continually rumble across the desk as the software is picking up the slightest of signals from the soundcard.
The above shot shows the software in action, rumbing along to some music from winamp. It's er, quite an experience. Ladies, don't get near this thing on full vibration
6. If you are having trouble with the software or can't quite get the profile right, I have a custom one created during my testing tomfoolery. By default you should place the USER PROFILES folder into C:\Program Files\Immersion Corporation\TouchWare Gaming 'Tis available from here
ITG should work with every game that well, has sound I guess. I had no trouble running this program with XBCD 1.07 and ControlMK installed. I also had Logitech Gaming Software installed and I didn't run into any hitches. Worked fine in GTA SA and BF1942. ITG should place a little icon in your system tray and it looks like this:

Oh, and you can always start ITG in config mode. To do this clisk on the TWG Configuration Mode entry in your programs menu or run:
"C:\Program Files\Immersion Corporation\TouchWare Gaming\TWGaming.exe" -config