Ok, for all of you "happy" Logotech MOMO owners: I took the wheel back to the shop where I bought it last June. I expalined the problem. The service guy said "Yes, I know about this, we have had a dozen or so of these." They have sold hundreds of MOMO wheels and had a dozen or so problems as described at the top of this thread. So if you get the same symptoms, do as I did, and take the wheel back.
I got a brand new Logitech MOMO wheel immediately, no hassle.
Larry
AMD 3000+,Epox EP-8RDA,Ram 1536mb 333 DDr, Rad 9800 pro omega 2.4.96, dx9b, Audigy, MOMO FF,winxp