Have you done all the callibarition in the psMoveServices (2)? If the controllers are still not oriented like they should be then you have to point them to your sensor and hold select, This will re-orient them.
The BIG difference between the kinect V1 (x360) and the kinect V2 (xONE) is that the V2 has a better camera resolution. Because of this it is able to track more bones. So if you want the best tracking the V2 is better.
BUT the reason why most people use the V1 is because of its price tag. Also from my personal experience the difference between the tracking is not worth the difference in price. The kinect V1 tracks the major bones just as fine as the kinect V2.
Conclusion: go for the kinect v1, its tracking is good enough for most games and it is way cheaper.
I know this might sound like a meme, but have you restarted your computer after installing the 1.8SDK and then trying to start driver4vr. I also had this problem not only with driver4vr but also with some other projects.