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Even if you could get that, a good percentage of the people have problems with it registering diagonals and some even have the controller break down on them after a couple months of use. It's pretty bad quality wise, probably bad enough to the point that if you're serious about playing fighters on your 360 you'd be better off buying a stick.

Also, I'm pretty sure Raging Demon can be blocked by pressing up on reaction. Marvel is pretty crazy so I wouldn't be surprised if there was actually a way to combo into it, though.