I use a similar method, but x=action 1, square=action 2, 0=action 3, triangle=action 4, then using macro's alt x=action 4, square=5, etc... same with alt for another 4 actions. I use the right stick button (r3) for target selection (f8). The D-pad is my menu navigation. I had to set select and start to the controller bound alt and tab macro for moving tabs in inventory, the ps button for battle mode. L2 is cancel, R2 is confirm. This layout seems to be working well in combat, but using the d-pad for menu navigation is slow and clunky since I have to stop moving to cycle through my menu's.