It wasn't in full 3D angular movement, actually. I seem to recall that the jetski tested a point in front of it and a point behind it; it then determined an appropriate angle to be at and interpolated it over time for smooth movement. In essence, the jetski never tilted sideways - just backwards and forwards.
Perhaps the tank demo would be more handy; although, it is a little complicated at first. If you can't get your head round what it does, come back here and we'll see if we can help.
"I am a living, thinking entity who was created in the sea of information."