Your radio might be the one to blame. I just programmed my MGM with a JR and a Spektrum and the controller worked the same as it did with my Airtronics.
I thought of that. For kicks, I tried using the Duratrax radio that came with my Vendetta, with similar results.
I thought my 8012 was a gonner when it did that, but just by doing the programming it was fixed. Did you try reprogramming the controller with the duratrax radio?