i implemented that kind of mouse flight with my old mouse script. there was some concern that it borked the physics and possibly colision detection as well. but it worked pretty well. another bug is that it didnt do the normal freespace coordinated yaw. meaning when you yaw at rate x you would roll and rate x*0.5, and now theres a table flag to change how much roll you get when you yaw. i dont think i have a way to read that value so my script has an option to set it manually.
one of my main points at dissatisfaction about the script was the way it stored and saved settings. theres a basic gui that comes up in mission when you first use the script, lets you set the settings with the mouse and then save them, this would create a file in the mission folder. if the file is detected it will use the settings and not display the gui. you had to delete the file if you wanted the game to give you the menu again. you could edit it but for some reason if you used notepad it wouldnt load right. you could use something like ms edit (the old dos editor) or notepad++ to edit the settings directly.
what i should do is make a button show up when you are in the options state. clicking it brings up the menu. this way you can just use the gui to change the settings. only reason i haven't continued to work on the script was because of little interest by the community and because i had assumed that new input code was around the corner. the script is not overly complicated, merely setting your desired roll, pitch and yaw rates.
this should be the most recent version, there may or may not be a newer version on the wiki (in the sample scripts section). also it may or may not work right because of continuing scripting development. should be compatable with more builds by now. id pull a recent trunk build and try to run the script. if theres any errors let me know, and il tweak it so it works.
http://www.hard-light.net/forums/index.php/topic,44634.msg913829.html#msg913829