hmm the following is the code I used to test such a camera
function ForumControls()
{
while(1)
{

mouse_pos.x = pointer.x;
mouse_pos.y = pointer.y; //updates the pointer bmap position
wait(1);
mouseXDist =(pointer.x -((screen_size.x )/2)); //gets distance of pointer from center screen
mouseYDist =(pointer.y -((screen_size.y )/2));
c_rotate (me, vector(mouseXDist,mouseYDist, 0), USE_AXISR); //hopefully prevents stupid turning issues


}
}
...and nothing happened to my ship. And yes I have everything set up properly, I just substituted this function for my old one that didnt use c_rotate. (which worked except at extreme angles of tilt)