I've found this to be a huge problem for users running Windows 8, Windows 10 or anything above, and I can say that this is because Windows uses a new mouse-system for anything about Win8 that completely breaks older games (like you said when the mouse/camera twirls, spins, and does random crap in many directions and angles at the speed of light.) This happens with these types of operating systems only, because Microsoft made it so your mouse doesn't snap back to the center when you move the mouse.
This isn't fixable with Torque or the Control Panel itself. You'll have to download a piece of regedit developed by a user who had a problem with some of his older games, just like you and just like me.
The link below will help you solve the problem. Follow the steps carefully, and be sure to input the right one into the system.
I've experienced a
VERY similar problem with what your going through - with MB, Constructor, and many other older games.
The easy fix can be downloaded
here
(Read the instructions
WITH CAUTION and CARE, then run the appropriate registry file for your OS to install the fix.)
STOPX Creator. Getting better by every release.