Im getting the SAME EXACT PROBLEM. I managed to get out of the death realm,but the town is hard to navigate through. I tried restarting the game, and it helps a little. The character dosnt laydown , or go at an angle as sensitively as it DID before I restarted the game.
Another side note, I am the Klyros race. I thought that might be the problem, so I logged in as a dwarf, and there was no problem. So Is the bug just for Klyros, or are other races feeling my pain?