Hey Chuck,
 
My Faderport works with X3.  Sometimes I have to uninstall and then reinstall the drivers.  Did that just now.  
I removed it from X3 as a control surface.  
Exit X3.
Uninstall it from Windows.
Reinstall the FaderPort application.
Unplug power and USB and then plug back in.
Launch X3.
Setup new control surface.
Select Faderport and also select Faderport for In and Out.
Create a new track and click on it.
The FaderPort volume fader should respond and the transport controls and lights should work.
 
Have you done all these steps like this?
 
Rimshot

Also, remember that to control volume faders at the Output in your X3 mixer view, press the Output button on the FaderPort first.  
 

No I didn't completely uninstall it.  I will try it.  I have a question for you then....  Do I have to go back into CMD in admin mode and retype the regsvr32 "C:/.... stuff back in to get it to work again?

I did not have to do that this morning...

Thanks man,  I will try that later on this weekend.  I appreciate the help.  Looks like I would have to redo the procedure everytime I have to plug in my little midisport 1x1 to do any synth tracks (I don't do much of that luckily)  which sucks but I will just create a handy file with all the right Drivers & dll's to keep nearby I guess.

Got it.  Thanks Rimshot.