[SOLVED] I took a look at the support for this game, and the fixes they recommended for this problem were my system's default settings, so that didn't work. What I did to solve it was just run the game in Compatibility Mode for Windows XP (service pack 3).

Original post below.
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As per the title, I'm having weird, erratic camera movements in mouselook mode with nGlide active. As in, the camera seems to instantly "snap" in the direction I'm trying to turn it. Also, vertical mouse sensitivity is WAY slower than horizontal. It doesn't seem to happen in Software mode, but the game runs really slow in software mode. It doesn't seem to happen in Direct3D either, but then my cutscenes are black... is there any solution to this?

Another user had the same issue, but as I'm new I can't post links :( The title of that thread was "[LOL3] Lands of Lore 3 Problems - Windowed Mode, Weird Mouse Acceleration" by the user Greygore.

Have you tried dgVoodoo 2 instead of nglide? I Havent't tried mouselook, but I was able to get the cutscenes to work in Direct3d mode by using the directx drivers that dgVoodoo uses for compatibilty.

If you've never installed dgvoodoo 2, download it (v.2.55.2 is the most current as of writing this).
*use "dege" as a password if needed*
In the zip file, you'll need to copy the 3 files, but DON'T copy any of the folders to your Lands of Lore 3 directory.
Now in the MS folder in the zipfile, copy the 3 files directly to the Lands of Lore 3 directory. (This will allow cutscenes to work in direct3d mode.

If you want to try the dgvoodoo version of glide also copy the 3 files, but not the folder, from the 3Dfx directory to the lands of lore 3 folder. You'll be prompted to overwrite the nglide versions.

You can run dgvoodoocpl.exe if you want to change settings.

Alternatively, you can also try updating the version of nglide. Though for me personally, dgvoodoo2 worked better for this game. I also liked glide mode better as it kept the aspect ratio correct, but it's possible that i just need to find the right setting for that.

I just tried this, thank you for the suggestion! Sadly, it doesn't seem to have resolved my issue, and it turns out I was mistaken; it actually happens in all three modes (Glide/Voodoo, Direct3D and Software mode). You have to move the camera diagonally for it to happen most frequently. Really is a shame. I might try contacting support and see what they have to say.