I think from the picture that your wiring may be correct, but it is hard to see which color wires are hooked up to where for the PS2.
Is the Brown wire on Pin12?
Some things that have bit me in the past include:
a) VL battery for BB2 does not have a proper charge. Or batteries in PS2 controller...
b) On the power selection for pins 12-15 make sure you are supplying +5v not VS. This is area #13 on BB2 diagram: http://www.lynxmotion.com/images/html/b ... htm#bb2lay
c) Try only connecting up the power and ground to PS2 and see if it will pair up then.