Your code will work if you have another control that can receive the focus. Control Validation occurs on the loss of focus. If you need to have just one focusable item active you will need to use either KeyPress, KeyDown or Textchanged events to enable your button, also make sure that the CausesValidation property of your TextBox is true.
I would also make the method more generic so you could call it from multiple textbox's by using the sender object to access the textbox that raised the event. Also if you have a True/False condition you only need to do the comparison in the first if statement and then you just use an else not an elseif.
for example:
Private Sub ButtonControl(sender As System.Object, e As System.EventArgs) Handles Input1.Validated
If DirectCast(sender, TextBox).Text = "" Then
ButtonSubmit.Enabled = False
Else
ButtonSubmit.Enabled = True
End If
End Sub
You can also use the String.IsNullOrWhiteSpace Method to check if just spaces have been entered if you are using the 4.0 framework or above. Like this TextChanged EventHandler.
Private Sub ButtonControl(sender As Object, e As EventArgs) Handles Input1.TextChanged
If String.IsNullOrWhiteSpace(DirectCast(sender, TextBox).Text) Then
ButtonSubmit.Enabled = False
Else
ButtonSubmit.Enabled = True
End If
End Sub