Thank you Huppy. I don't see any flymode column in my npc_types database table, so I must have an earlier revision of peq.
Something I find interesting is that if I zone out and come back in, the NPC that appeared to be sliding across the ship slowly on ice, is back in it's original location.
Players however, still maintain their icy movement position, even if I zone out on another character and zone back in.
The issue also appears to be framerate dependent. When I am in the actual Everquest game, NPC's slide around like on ice. If I use my other monitor and navigate to a website on my browser, the framerate drops by about half on my Everquest screen, and the NPC's no longer slide down the ship. If I re-focus my mouse back on Everquest, the NPC's begin to slide again. Extremely strange!
Here is a video I recorded of the issue:
http://screencast-o-matic.com/watch/cqjFrZth7F