Oh I see now, that makes sense.
Everyone seems to agree there should be no deadzone on this stick, so I'm going to try to return it (may have to get ebay involved).
Edit: Just heard back from seller, he says I "may have to tighten it down, but it should be fine since i only played on it an hour total". Not sure what to make of that.
A stick is an investment. I would keep it, as long as the actual enclosure is intact, and the internal circuitry works properly. Get yourself a screw driver, some pliers, and head on over to focusattack.com for a new LS-32-01. Fiddling around with these things is half the fun.