I'm also thinking about just going to a FPS style camera for now so that I can continue working on getting a world created for some computer controlled agents since that is after all the whole point of this exercise. Wish me luck!
Okay so, as is always the case with these issues, I now feel stupid :). I some how deleted the line of code that turned off the native mouse control that Panda3D comes with... Sigh. Its cool it only took me 3 days to notice.