@OutofPrintArchive Hmmmm... that's strange. I played Type 4 quite a bit on the original PSX and I believe it was compatible with both digital and analog.
I'm pretty sure I only ever played with analog though. By the time I picked up a copy I had been playing Ridge Racer 64 for some time and was so used to analog controls.
Is it for curiosity's sake or are you just more comfortable with the digital controls?
I have no Insight but wish you luck on getting it working.