Can't get dualshock 3 controller to work on PS3.. Please help!

I can't get my controller to work on PS3. I start the game and the launch pad comes up and everything works fine till I hit the Play button.. After that I can't select start or config or anything with my controller. I know the controller is working just fine because I can hit the playstation button and it pops up the ps3 menu with no problem. I hooked up a mouse and keyboard to my ps3 and I can select start with them but not the controller. I also tried another wired controller that I have and the same thing happens.. can't do anything with it.

Are you accidently hitting L1 + R3?

Is the controller set to controller 1? I know if it's set to controller 2, you can do everything up until the hit Play button part. Needs to be set to controller 1 after that. Hope you can get it working :)

I'm not hitting l1 + r3 and yes it's set to controller 1.