I don't think it will, the XBox 360 controller required various IDE and runtime changes, so it won't be backwards compatible.
Edit: Vinny: you need to run the full setup including the VS2005 redist that the setup should launch, is sandboxie preventing that from launching or preventing its successful installation? If sandboxie breaks the setup I'd contact the sandboxie devs, because I don't think there's anything unusual about our setup and it hasn't changed significantly since the last build