Unfortunately the first thing I had to do was move your post to the correct forum. This is clearly a gear issue, not a forum issue. Please help make our (moderator) life easier and post in the right forum.
On-topic: Seems there are more reports of this problem with Serato. Are you using full version?
What you can try is downloading the (free) time-limited trial of Mixvibes Cross (not Cross Free, that does not support controllers). Install it and start up the software. See if it works ok (might be some mapping issues, but sound should work). This will exclude the controller from being at fault.
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