That thing would never fly unless the airfoils on the paddle wheel had some kind of cyclic pitch control. Even with that, it doesn’t look like it would fly. No way could those propellers generate enough thrust (IMHO) and the thing looks like it would stall instantly.
Supposedly, it had 3-axis control, and replicas have been built and flown.
Also, there is evidence of a government cover-up. It turns out the Smithsonian attempted to hide a contract with the Wright family dating from 1948, as documented in the 1978 book History by Contract, by William J. O'Dwyer and Stella Randolph. From a review:
This book accurately reveals that there is a real legal contract between the heirs to the Orville Wright estate and the Smithsonian Institution, which forbids Smithsonian from recognizing anyone else as flying first. This contract has paralyzed early aviation history research in the USA. The book is a must read, and well done, with loads of original documents and information confirming that Gustave Whitehead of Bridgeport and Fairfield, CT, actually flew before the Wright Bros, by two years. The book explains in detail how Smithsonian has fought the evidence, due to the contract. To view the Contract and other proof of Whitehead flying first, go to www.gustave-whitehead.com. I rate this book an A+ and wish a reprint would occur. For more info on this book go to http://en.wikipedia.org/wiki/History_by_Contract. I am reviewing this book on 4/8/13.