All I can say is follow this exactly.
http://forum.cockos.com/showthread.p...ight=faderport
I did, I tweeked a couple of settings, unrelated to the fader, but it doesn't do what you describe.
As far as I know, the Faderport behaves like a MIDI controller, but it isn't actually a MIDI controller - I don't think it sends/receives MIDI messages, but I don't know for sure.
Is the FP running the latest firmware version?