Well, I tried using Kurte's code to resolve this wireless controller issue. The wireless controller still does not work, but the red LED on the receiver did stay lit this time while the controller had the sequenced blinking LEDs (when pushing the analog button) as mentioned before. The wired controller continued to work properly.
I'm not sure if this make any difference, but I just want to provide some previously unmentioned details. I said earlier that I have the control lines plugged into E4, E5, E6, and E7. More specifically, the layout is: MOSI is E5, MISO is E6, SCK is E3, and Select is E4. It is within a software SPI bus with the Master Mode box checked.
Kurte, you mentioned that your attempt to use a software SPI bus did not work at all. As of now, I have not tried using a hardware bus per the statement in the webbotlib docs (http://webbot.org.uk/WebbotLibDocs2/46240.html
) about using a software bus over a hardware one. Just for the heck of it, I will try a hardware bus, but I am not exactly sure what lines gets plugged into what pins.
In the meantime, Lynxmotion has sent me another wireless controller to replace the defective unit that I previously mentioned in the thread. I will try it out when I get home tonight.