The set cue works like the ctrl key on your keyboard. You have to push the joystick and whilst holding it on set cue press the cue point you want to set.

lol sorry you lost me at whilst. this is what i am doing right now with the he cd player i go to the cue spot that i want. I now figure to set the cue point all i would have to do is click the joystick down. (that is where the set cue is located) but nothing happens. as for using the keyboad i dont use it for setting cue points i use a mouse ( i know i am retarded) but i just started using relative mode and cue points and so forth.

so is there a step i am missing

Let's say you're on the left deck and you want to set a cue on cue 1, you need to hold down the left joystick then press B1, to set a cue on cue 2 you would press B2

no shit so you cant just toggle it. i was not aware of that. thanks for clearing that up i appreciate that

Is the green LED under the joystick on? If not, it's in transform-mode then press the joystick down (like a button) till you see the LED

is it just me or does it seem like the transform function on the joysticks lags a bit?

You mean toggling the status/LED? IF so, thats normal, to make sure you dont accidentally press the joystick down and switch modes.