I dun' jitterd.

[Nerva]

I did some testing (in single player):
60FPS, V-Sync ON - a lot of mouse lag; cursor feels like it is sliding on ice; some amount of stuttering every 2-3 seconds
59FPS, V-Sync ON - significantly less mouse lag; also no tearing; no stuttering
120FPS, V-Sync OFF - lag is similar to 59FPS; ships appear to handle a bit better; a lot of frame tearing
~180FPS, V-Sync OFF - a bit less mouse lag than 59FPS; ships appear to handle a lot better; a lot of tearing
1920x1200 resolution, ATI GPU.

However, and this is a big "however", ships do NOT, in fact, handle any better. Actually, only the camera moves way faster around the ship, which makes the ship feel more maneuverable. In first person mode, there is no difference in response whatsoever (and something odd: ships do not roll at all when turning, unlike third person mode).
Personally, I prefer the "59FPS, V-Sync ON" mode. Also I cannot play multiplayer with more than 100FPS. Probably some connection related issue.