When viewing FSX in virtual cockpit, with all aircraft, including payware and use the space bar and mouse to look around the cockpit, as soon as i release the space bar the view returns to the default view (looking out the window, this means i am unable to click any buttons within virtual cockpit - what could be causing this issue, its only been doing it for a few weeks now? or so i have noticed 

Did you (maybe accidentally) activate the "Mouse Look" option, i.e. that you control your view with only the mouse? This is indcated by the cursor being a little cross instead of the normal arrow. IIRC, the key combination for activating/deactivating this is Shift+K or CTRL+K.

The second possible -though much less likely - reason that comes to my mind is that you have installed a camera addon, e.g. EZDOK, which shows the same behavior. In that case you'll need to read the manual on how to actually control the camera, it's rather complex and I don't know all of its facettes by heart.

 

Best regards,