As a long time sim player (I started with TIE Fighter and some Hornet sim on my PowerMac back in the day) I must say I am very impressed with this! So impressed that I was driven to write this my first review on GOG. I have not tried this game in Arcade mode and I recommend all pilots leave the game set to the default "Simulation" mode based on what I read in the manual. Taking away the simulation features would make the game less enjoyable.
The inertial vectors when flying remind me of such classics as Elite/Frontier Elite 2 - which has become one of my favorite abandonware titles. Not to fear though - the default piloting has an assisted mode whereby the ship computer helps you maneuver by firing thrusters to "assist" getting you moving in the direction you're pointing. For some really interesting combat you can turn this assist off (N key) - your ship will continue along its original vector allowing you to rotate around, firing from both fore and aft particle cannons - using the a and z keys to make adjustments. Very cool!
So far the story and cutscenes are very cool and the story is well delveoped - and the graphics are way ahead of their time. Be sure to read up on the external view keys for maximum enjoyment.