The bug might be related to the demo mode.
When the "not in demo" popped up, and going back one menu,
the game hang somehow.
It might not come up in the full release.

What I especially like in the UT Onslaught Carcontrol,
was that the camera view was free to move, while still beeing able
to control the car perfectly.
Also look at the time it takes for steering acceleration.
They optimized this part very nicely.

in the flight-mode the camere.arc should be higher, as
the player has to have a broader view than in the
racemode.
Try camera.arc=80; or so
(could be a setting aption too)