Xbox 360 Wireless Receiver to PC problem

Hi all (From: Pi noob)

What I'm trying to achieve is to have my Xbox 360 wireless controller connect to a wireless dongle that is attached to a USB port on the Pi.
Then to use the LAN cable connected to the Pi to send the signal to my Windows 8 x64 PC.

I am able to get the Pi + Wireless dongle + Controller talking with the following commands:
sudo dmesg | grep Xbox
sudo xboxdrv -w 0 --controller-slot 0
sudo rmmod xpad
sudo xboxdrv -w 0 --controller-slot 0

BUT
The problem comes in when I try connecting it all to the PC ie. Running USB over IP app on Pi and VHUI64.exe on PC.
Control panel detects "Xbox 360 Wireless Receiver for Windows" but there is a yellow exclamation in front :(

Additional info: When doing the PC connection with Pi+Dongle alone (without controller) it seems to detect the dongle without any problems.