I’ve only heard of that issue with the Xbox360 version never with the PS3 version. Still its really rare and if it does happen the fix for it is to extend the cable all the way out of the cable compartment or to change the detachable cable that it has.
I own a PS3 Madcatz TE and its awesome, worth every penny. For a stock stick I feel its better then the normal HRAP 3 / HRAP EX Pro because it already comes with Sanwa buttons. Trust me, the stock Hori buttons are horrible and when they get dirty they stick and can be unresponsive.
Only thing I wish I did was get the XBox360 version as its a better investment overall since 1) its easier to dual mod and 2) it doesn’t have any compatibility problems that can be seen in the PS3 version.
But I, like yourself, bought the stick for playing on my PC with GGPO, 2DF and Street Fighter IV for PC. So I’m content with my purchase and I feel that you will be too if you decide to buy the TE.