I'll have to look into the mouselook issue the OP is having. This issue MAY already be corrected in the development build of Inner Space; to try it out, right click IS and select Patcher, check "Download development (test) patches" and then close and restart Inner Space.
Hello, I have Windows 8 which seems to have .Net Framework 4.5 and DirectX11 out of the gate. IS Suite won't launch and it insists I get Net 3.5, IS (target icon thingy) wants DX9... any chance of versions that support .Net Framework 4.5/DirectX 11?
Hi! Have you considered that what the software is telling you to do might be right, and that the answer you get might simply be to do what it says?

The message you're getting from ISBoxer the first time you run it is a message built into Windows 8. .NET 2.0-3.5 is a separate package from .NET 4.0-4.5, and Windows 8 will need to download some pieces that it does not specifically ship with.
Similarly, DirectX 11 is a separate package from DirectX 10, and 9, and you probably have all 3 of them installed simply by having Windows 8 installed. However, what Inner Space needs is
an update to DirectX 9 that is not shipped with Windows 8. Or Windows 7, or Vista. So, every time there's a major WIndows release, this exact question is asked about the new version of Windows.

Inner Space supports both DirectX 9 and DirectX 11, but it does require d3dx9, which is downloaded only with the DirectX 9 UPDATES, never part of the base OS. Please install the updates, and enjoy!