I was noodling around in Vista when I think I have discovered how to get LockOn to look great in it.
Prior to installing, right click the setup.exe, go to properties, compatibility tab, and check the boxes for both the Run as Administrator and Run in Compatibility Mode for XP-SP2. Then install by clicking the same setup.exe. (Do this for all other programs for LockOn as well such as Loman, Modman, etc...)
Once it has installed and all of your mods are installed, go the LockOn folder on your hard drive (normally in the C:/Program Files/ Ubisoft/Eagle Dynamics/Lock On/) and find the LockOn.exe file. Right click the LockOn.exe file, go to properties, compatibility tab, and again for this, check the boxes for Run as Administrator, Run in Compatibility for XP-SP2 and also check the box next to "Disable Desktop Composition". This last setting changes the Vista Aero scheme to the Vista Basic mode in effect disabling Aero from Vista. Once you are done flying, Vista will revert back to normal, and then the next time you go to play LockOn, it will change back automatically for you. This has fixed the disappearing cockpit and other graphic problems I had on the nVidia card system with nVidia chipset I have.