Maybe it is a bad USB cable.
The cable between the FGC2 and the Quadstick in the picture does not look like the one that was shipped with it. The cable that was sent with it was grey or white.
The FGC2 was shipped with the correct firmware installed: V1.1.2.4, and it was tested. Do not use the Beta firmware. Do not have anything plugged into the FGC2 while updating the firmware.
What are the lights on the FGC2 doing? They should start out as flashing Blue, then go to solid Blue once the Quadstick starts up. In your picture the lights look purple:

That would indicate it is in firmware update mode, not running mode, but it could just be the camera.
When using the
test.quadstick.com page, it must be the front-most window. With it in front, just plugging the FGC2 into the computer should cause the test page to display an XBox 360 controller.