I was a little hesitant to post my .cap file since the game looks like ass right now, but okay!
http://www.mediafire.com/?mxznn0jnn20
Also, thankyou for your help, I will try one of those.
Don't worry about how your game looks, nobody is going to mind
Anyway, that "little loop" is coming from the fact that your hotspot is placed at the nose of your ship. When an object rotates it does so from the hotspot, which Construct assumes is the center of origin. If you want to rotate your ship in a natural looking way, you need to center your hotspot. So thank you for posting your .cap or else nobody would have ever caught that
I took off Car behavior gave your ship Custom Movement. I think it feels more natural and spacey, but you can decide for yourself. Your updated .cap is here:
http://dl.dropbox.com/u/529356/newship.cap
v0.99.82
I realize that you're using an older version of Construct but it may be worth it to you to upgrade because there were some other mistakes (one of them pretty major) that I noticed in your .cap that I corrected and added notes on.
Also, if you plan on making frequent uploads I recommend you get Dropbox, it's very handy. Mediafire is total crap.