First thing you need to do is to install your joystick on your PC. This is relatively straightforward in Windows XP, as it tends to automatically recognise 'plug and play' devices, otherwise you may...
I use the Logitech Attack 3. You can get it online for less than $20. The only problem I have with it is that it does not rotate, so you will need to use the num pad for rudders.
Yes, you can play Microsoft Flight Simulator 2004 without a disc. I have put a link under this question explaining how to play Microsoft Flight Simulator 2004 without a disc. I have put a link...