I have a Space Pilot working with AutoCAD 2008, WinXP64.
After going from version 3.6.3 to 3.6.8 I can no longer rotate normally in AutoCAD. Also, after I rotate the drawing (3D) I always have to press the Esc key in order to use the icons in AutoCAD. Very annoying and this is slowing my job down considerably.
Unfortunately I can not reproduce this. What happens if you calibrate your SpacePilot after rotating? Please also try the Cube 3D demo - does movement work as expected in the demo?
I came back to the older version and now everything works fine. I will stay there until I finish my big job that I working on. Will let you know in a couple of weeks!