From what I heard, no it's not, at least on the PS3, Harmonix say they're working on the compatibility problem and problems in general with the peripheral.
Well I finally did it! GHIII is complete on hard mode baby! I figure what I would do is go through each tier and put them in order of personal preference
Tier 1Talk Dirty To Me
Hit Me With Your Best Shot
Slow Ride
Rock N Roll All Night
Story Of My Life
Tier 2Sunshine of Your Love
Barracuda
Schools Out For Summer
Bulls On Parade
Mississippi Queen
Tier 3The Seeker
Paint It Black
Lay Down
When You Were Young
Miss Murder
Tier 4Even Flow
Paranoid
Kool Thing
Anarchy In The UK
My Name Is Jonas
Tier 5La Grange
Welcome To The Jungle
Same Old Song And Dance
Rock You Like A Hurricane
Holiday In Cambodia
Tier 6Black Magic Woman
Black Sunshine
Pride And Joy
Cherub Rock
The Metal
Tier 73's & 7's
Cult Of Personality
Knights of Cydonia
Stricken
Before I Forget
Tier 8Number Of The Beast
One
Cliffs Of Dover
Raining Blood
The Devil Went Down To Georgia
Fav Songs: A
lot to choose from. Playing the intro for Number Of The Beast was as good as I thought and One/Raining Blood had me head banging the way through it

An unexpected surprise for me was Black Sunshine. Never heard it before I played it and that vocal intro to the song is simply badass. 3's & 7's is as much fun as I hoped it would be, what a crazy note chart. But there are others that deserve mentioning, Sunshine Of Your Love, Barracuda, Even Flow, La Grange, Welcome To The Jungle
Worst Songs: Well that's easy. I didn't like Before I Forget before the game, and that didn't change with some annoying and frustrating chord changes. Also, Miss Murder not so enjoyable. The Metal wasn't much fun to play I thought. If there's going to be any Tenacious D song, it's Tribute!
All in all, the best GH game to date. I have to say there's a huge difficulty spike between Tier 7 & 8 on hard. I can get through the 7 tiers with relative ease with the lowest being 4 stars. Tier 8 however, is virtually all 3 stars. Some sections in Raining Blood and particularly the solo in One, is almost riduclously difficult. Regardless though, I still vastly enjoy playing them.