Thanks to everyone so far!
As Stated before, I agree "panic" is an emotive and descriptively general word, and is therefore not entirely appropriate for describing pilot behaviour. (However: Talk about throwing the cat among the pidgeons!)
It seems that the "Startle Response" and subsequent failure to recover from it are more appropriate descriptions of behaviour. (See page 2 for definitions).
I don't know if anyone has looked at the links I have posted previously, but this one is essential if you are interested in this topic, and a really good read as well.
http://amelia.db.erau.edu/ec/ntsbaar.htm
Then, click on:
AAR77-01 (Pdf Format)
If anyone knows the accident investigator(s), I would really like to talk to them (if they're still around!)
Regards
Trish