With version 108, the effect was smooth but with 111, the collisions seem to make the ship jitter a lot more, as if the polygons are pushing the ship a bit more forcefully. As per Ashley's request, here is the *.capx:
Any ideas? I don't know why it moves smoother with 108. Also apologies since the level is kind of messy and incomplete otherwise.
EDIT: Sorry, forgot to mention that you can move around with arrow keys or WASD.