Mouse control assembly issue

I am working on a TGE project using Codewarrior as my development environment. I just noticed that I had both the TORQUE_SUPPORTS_NASM and the TORQUE_SUPPORTS_VC_INLINE_X86_ASM macros turned off. Because I wasn't sure what I was missing in my project with both these macros turned off, I have been playing with turning them on. The NASM code doesn't seem to be supported in Codewarrior at all, and looking at old posts this seems to make sense. The X86_ASM macro compiles and links successfully, but after building with it turned on, I am seeing a very interesting control issue with the mouse.

What is happening is that the mouse control seems to be behaving very strangely for the forward/backward motion of the mouse. when I am facing in a direct Y direction, forward backward motion of the mouse seems reversed. When I am turned from the direct Y direction, moving the mouse seems to be including some rotation information as well as the strict up/down motion I am expecting. This is a bit hard to describe, but basically it's just off.

In otherwords, there seems to be a bug of some kind in the X86_ASM code under the codewarrior compiler. (This is all on windows.)

If anyone could confirm this, or offer any suggestions, I would appreciate it.