Thanks for the tips Mav.
Yes, I spoke to Flexman about this (Richard Hawley ex simhq combat helo section editor), and he gave me his two cents on the situation - He believes it has something to do with the way programmers used to approximate floating point arithmetic using normal integer CPU instructions (because the latter are quicker). The downside of this method is that a few weird things start to happen when you run this code on powerful machined where the fps is pretty high (mne is a p3 700)- a slow keyboard repeat rate is one of them.
Anyway, he said that, as far as he is concerned, a set of analogue rudder pedals shoud fix it. And you've just confirmed that MAV. So my CH Pro Pedals are awaiting pickup tomorrow at the local DHL office :-)
To test Flexman's theory, I looked for ways to lower the fps - Running lb2 in software mode seemed to do the trick in all views, except the default 2d front cockpit view (as this is the view with the quickest fps!). In the outside and full 3d cockpit views the panning and keyboard rudder worked like I remembered them - On the 2d inside cockpit view, it was slow again..... So I guess that confirms Flexman's very interesting theory.....
BTW, I'm running lb2 using the Janes EA official lb2 d3d patch on a Nvidia gts 2 on detonator drivers, and it works great - There are a few small graphic anomalies (streaking lines on some explosions), but it works just fine for the rest of it. So those without voodoo cards, don't fret - lb2 looks great with the d3d patch!
Thanks for all the help and suggestions guys.
Enjoy the Christmas season with family and friends.