The bouncing of running up and down hills has not been fixed. I have this issue myself and ignore it. the jkli controls are really the way you should be moving the camera, and I am sure they have not fixed the camera movement with the mouse yet either. Been this way since release.

Game was designed to keep your hands off the mouse; sad to say. The hardware mouse though is good to use though due to lag with the ingame one since its tied to FPS.