OK, I have received a response from the ACCC (Australian Competition and Consumer Commission). They have indicated that they do not act on individual complaints but they do track situations where there are multiple complaints and may take action.
They have suggested that I try to resolve the issue directly with Microsoft through verbal or written channels. If that fails, they suggest I make a claim through the small claims tribunal of the Department of Fair Trading. I'm not going to bother with
this because I know longer use my Microsoft wheel. Now I have a Logitech G27, which has 100% functioning force feedback and Windows 7 drivers.
I do suggest that any other Aussies subscribed to this thread, make a complaint to the ACCC. Here's the link to lodge a complaint online:
http://www.accc.gov.au/content/maintain/create/index.phtml?contentTypeItemId=9133&informationSpaceItemId=268347&inPop=1&returnUrl=.&type=Other
Maybe if the ACCC receive enough complaints, they may act. The email response that I received ends with:
"ACCC staff make decisions on which matters will be investigated further based on the ACCC’s
Compliance and Enforcement policy. A number of factors are weighed including whether conduct raises national or international issues, involves significant consumer detriment or a blatant disregard of the law."