I gave some further thought to this issue and I'm not sure that disabling head tracking is the true or best solution. Yes it will fix the issue but it may not be the best solution. Other people have suggested as such but I thought I'd think through it.
We know head tracking works very well in ships, so imagine your body as a ship with fixed beam weapons. In this scenario, it doesn't matter where you turn your head, when you fire it will always hit where the aiming reticule points, so the reticule is like a laser pointer. On foot, it should be that it's like your body is the ship and your mouse moves the aim like pitch and yaw, on a ship so your weapon stays held out in front of you in a fixed position. So moving your head, should not affect where the weapon fires, it just means the aiming reticule moves on screen.
On foot we need to ask the question: is headtracking moving your head inside the helmut or is it moving the whole helmut. We secondarily need to ask the question, is the HUD being projected from your body out in front of you or is it being displayed on the inside of your helmut. I can't see how it would make sense to project the HUD out from your body in front of you on foot, so it must be that currently you are moving your head inside the helmut, because the HUD moves around with headtracking, which doesnt make sense.
So this is part of the problem. The HUD on foot should be displayed to the player on the inside of the helmut and when you move your head it should move the whole helmut. This would mean that the HUD will ALWAYS stay centred, not moving around as it is now!
With your head perfectly centred, the aiming reticule should be directly in the centre of the screen/HUD and when you move your head around, the reticule should move around in relation to the HUD, however when you pull the trigger it should always fire at the location the aiming reticule is pointing like it was simply a laser pointer. So, turn your head to the left and you should expect the aiming reticule to move to the right of the screen with the HUD STILL centred and not moving. I assume here that your arms always hold out the weapon in front of you in a fixed position and when you aim, you are simply moving your whole upper body with your arms and gun following this movement precisely, however your head has the freedom to move in relation to this. Again, the HUD stays centred on screen as you are looking through the visor of your helmut and your helmut tracks with your head.
On a ship, the HUD is projected on the 'dashboard' in front of you, so when you move your head, you should expect the HUD to move on screen as well, which it does as expected, however the weapons still fire where the aiming reticule is pointing.
Perhaps I'm missing something and it is more complicated than that? It just seems like a bug in a system that wasn't fully tested before release.