Cool! I like how the world feels limitless even though after a while you figure out it isn't. I think you should add some more scenery though, like building and stuff to keep people interested as they fly around. And I like the water effect, but it is kind of jumpy. I also think you should work on collision, because that was kind of odd when you hit anything. Lastly, I think that it sound be third person, although you still control with the mouse.
And what kind of game do you plan to make out of this?
Good job! Great for a newb game!!
Edit: My suggestions are only suggestions.