I have followed these other posts on several installations and it has always taken me a couple days to get things working properly.
Here is how to use the latest Versions of Grumbel's Userspace driver on Tested on a fresh install XBMC Live Dharma, all buttons and Triggers are also working 100% with this method.
Add Grumbel PPA
sudo add-apt-repository ppa:grumbel/ppa
sudo apt-get update
sudo apt-get install xboxdrv
Create a bash script that will start on system startup in a few steps
and open for editing
Paste this into the newsly created xboxdrv.sh
xboxdrv -c /usr/share/doc/xboxdrv/examples/xbmc.xboxdrv
make xboxdrv.sh executable
chmod +x xboxdrv.sh
Open rc.local so we can add a line to start the xboxdrv.sh script
Add this above exit 0
Thanks to , alexpigment, awef previous posts for pointing me in the right direction and of course grumbel