MS Wireless Racing Wheel with Force Feedback problem after xbox update

Hi,

I’m curious if anybody has noticed the same problem in Forza. About 3-4 weeks ago there has been an update from microsoft for xbox 360 after which my steering wheel gone mad.
It seems now like it has only three states: full left lock, center and full right lock. Game became totally unplayable because the slightes move of the wheel from center position is recognized as full turn. It’s like playing on d-pad. I’ve checked potentiometer inside the wheel and it gives the right output so it seems not because of the electronic malfunction. I’m betting a glitch in update code but I don’t know anybody with that wheel model to test that. Can anyone of you tell me if I’m right or wrong?
I want to try some kind of factory reset for xbox and install forza without connecting with internet but I don’t want to lose my game progress (I’ve been playing forza 4 for about a year). Is there a safe way to recover save files after fresh install or move them to a new account?

Thanks in advance for any help or ideas.

I’m sorry for any errors in this post, English is not my native language.