THere are several ways to use the Rotating/twist funtion.
When going Head to Head you can Twist To the right, and pull the joystick to the lower right, this will casue the ship to do a QuickCorkscrew, and you will be labeld as a "rudder-whore", it is best used when you player opponent has a little lag. Other wise it isn'y very effective.
Another way is one i like a lot is you can do a qucik turn, by rotating, and turning at the same time, kinda like a wing-over. Or while in a circleing match you can use the rotating to lead you opponent more and have a better turn rate then him.
YOu need to practice it, and get comfortable using the funtion