Apologies for the late reply - and thanks for your input, Novodantis!
Here’s what I have currently. I’m no scripter, so the code is kind of hacked together from various sources. I’ll get better. I hope 
This is currently attached to my space ship. I have a slightly modified version of the WoWCamera attached to my Main Camera.
var rotateSpeed:float = 150.0;
var speed = 20.0;
function Update ()
{
var rotation = Input.GetAxis ("Horizontal") * rotateSpeed;
var vTranslation = Input.GetAxis ("Vertical") * speed;
var hTranslation = Input.GetAxis ("Horizontal") * speed;
vTranslation *= Time.deltaTime;
hTranslation *= Time.deltaTime;
rotation *= Time.deltaTime;
// Allow turning at anytime. Keep the character facing in the same direction as the Camera if the right mouse button is down.
if(Input.GetMouseButton(1))
{
transform.rotation = Quaternion.Euler(Camera.main.transform.eulerAngles.x, Camera.main.transform.eulerAngles.y,0);
}
/*
Move our player along it's new vertical axis
*/
transform.Translate (0, 0, vTranslation);
transform.Rotate (0, rotation, 0);
/*
This locks the cursor - making it invisible to the user.
*/
if(Input.GetMouseButton(1) || Input.GetMouseButton(0))
Screen.lockCursor = true;
else
Screen.lockCursor = false;
}
@script RequireComponent(CharacterController)
It works…I guess. Basically right click and drag, allows you to change the pitch and yaw of the spaceship, and then accelerate from that local direction. However, A&D do nothing in this mode (I’d expect them to rotate the ship). I’ve got strafing working in this mode (right click), but a strafing space ship just looks…odd.
Left click is a typical orbit. Using WASD allows you to move forward and back, and turn the ship left and right. This view also, does not always align the camera to the butt end of the spaceship every update. The only thing Left click won’t do, is give you any pitch adjustment controls. But it’s great for working on a horizontal plane 
If I could figure out how to smoothly integrate pitch changes into the left click mode, without spinning my ship uncontrollably, that would be perfect. Otherwise, I’d settle for turning in the right click mode.
I notice the jittering of the space ship when I use the follow cam (right click) as I’m constantly updating the camera to the ships rotation. I think you touched on this with your mention of Slerping. Thats something I’d love to fix.