Have you set up the vJoy device in the game's settings to trigger specific functions?
The vJoy device is completely separate from any other joystick devices, and is basically the equivalent of plugging in another physical joystick; if the game isn't set up to respond to that device, it won't.
Targeting options don't apply to joystick input like that, as it is actively polled for by an application, rather than received from the Windows input system like keyboard and mouse input.