If someone could tell me how to beat that level i would be eternally grateful. if not it probably means that i should practice more.

Well I think you should focus on the scout ships that fire missles first. Kill them as fast as possible to minimize their attacks on the cats eye. Also I try to stay ahead of the ship as it passes through the ruins of an old one. Again, main thing, recognize the one's that shoot the missle first. They usually appear brighter by site. Also use the jet's missle's when possible. They do more damage and are faster.
Don't stray to far from the ship and keep your eyes open for threats to it.

I suggest staying in guardian mode, no forward thrust, and staying behind the Cat's Eye at all times. Only shoot enemies that come in front of you, and jiggle the right thumbstick often to look for the fighter pods (the ones that have 3 rockets and look like wegdes). If you do see one, fire 3 or more rockets at it and it's toast.

I was stuck on this one for a while too. The best piece of advice I can give is - Use the Decoys in fighter mode (special action). If you plant a Decoy near the Cat's Eye every time you pass by you'll can pull alot of the missle fire away from its hull. Also, stick near the ship and keep an eye on your radar. I found that the Cat's Eye would quietly slip away while I was launching volley after of volley of missle.

Hey thanks like that. I never read the book, but I was wondering what they meant about decoys. Hee hee.