OK, I was talking with Lusche about this problem, and I figured out how to quantify it a little better.
I'll try to draw a diagram, but I'll explain it using my big boy words first

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Imagine that your in-game head position is inside of a sphere. Your actual head position is a fixed point in or on this sphere. If I leave my head in the default position, I've discovered that I have no problems at all.
However, if I move my head back or forward at all, when I rotate my point of view my head position actually moves as well.
For example, if I start out by moving my head position back behind the default position, so that it is on the back of the sphere, when I look UP my viewing position moves and comes to rest at the bottom of the sphere (basically my head is resting in the seat). If I look left, my head position moves to the right side of the cockpit. If I look right, my head position moves to the left side of the cockpit. I'll try to draw a little diagram to explain it, but I think I did a pretty good job.
What I want to happen is my head stays where I put it, and rotates like normal.
Also... how do I put a picture into a post?
I cant even get a working link to this dang thing going
