Its almost like there is a view spring somewhere in the game but no options to turn is off. While using the mouse to look around while moving with wasd the view will erratically jump straight up for straight down some times turning me around completely. Ive messed with the control sensitivity and mouse smoothing with no avail. Windows xp 2g mem 1.8 g amd semphron 300+, ati hd 5670, direct x 9.c . ps/2 logitech optical mouse. Have no problems with any other fps. Can anyone help?

Sounds totally new to me. One thing that comes into my mind is external programs affecting mouse movement. You could be running something in the background.
By the way, how high is your sensitivity (cm of mouse movement for 360 turn) ? Also, write /showfps 1 in the console and tell me what's your usual FPS while playing.

PS. If possible, try a corded mouse.