Ok…so with further experimenting and your suggestions I did find the problem. I did, in fact, have to turn off Rudder-Steering in the simulator (thanks AGuther). I also increased deadzone to about 19 although not sure if it was needed.
The behavior I experienced with the rudder-steering assist active was that the plane initially veered the opposite direction before turning the correct direction. This, combined with the delay made control nearly impossible. Turning off rudder-steering cleared this wrong-direction veering so the aircraft responded correctly in the correct direction.
Thanks for your help!