Yep, I've seen the same thing with autopilots with an internal compass. Even my MinnKota trolling motor autopilot has an internal compass that gets confused from time to time and will try to take the boat in a circle...
However, the new autopilots, like the S1000, are supposed to use GPS - not a compass - to navigate. That should (I know, shoulda - coulda - woulda) fix the problem with internal compasses going off scale in waves or changes in attitude. That's why I am interested in the results from those who install the S1000 - does it work like the ad says?
So I hope Fitz and Bill will keep us informed! Do it work like they say? Technology moves ahead - this could be a good step on the right direction...