The way it appears to currently work is to constantly accelerate directly toward the cursor. That doesn't work well in very heavy ships, as the reticle overshoots the cursor.
Maybe something more like the following:
http://www.red3d.com/cwr/steer/Arrival.html
-:sigma.SB

Hey that's really cool (not sure if it's what vendetta needs though). You get used to the jerky mouselook.

Press ; to activate the mouselock mode, which might work better for you. Or use my inertial dampers setting bind.