get an exchange OR research users that MAY be able to assist with installing a new Dpad altogether like superfenix2000, etc.
My 2 cents...

Well, sending it back to China is not first on my list.

it seems to me the membrane might be misaligned, or the d-pad improperly seated. Looking at how the XD and XD+ come apart, however, it?s the very last thing you get to after taking the entire thing apart, and de-connecting almost every cable - Blech - It?s like working on my car...
Just wondered if others were having trouble, or if it was just me. That?s the first thing on my list. Then I?ll be able to decide what needs to be done from there. My original XD d-pad was just fine, albeit a bit low (flush) in the case - this one protrudes more than the original - but it may actually be a bit TOO much, leading me to wonder if I need to get in there and tinker.