The stability of the dynamical trajectories of softened spherical gravitational systems is examined, both in the case of the full N-body problem and that of trajectories moving in the gravitational field of non-interacting background particles. In the latter case, for N greater than or equal to 10 000, some trajectories, even if unstable, had exceedingly long diffusion times, which correlated with the characteristic e-folding time-scale of the instability. For trajectories of N approximate to 100 000 systems this time-scale could be arbitrarily large - and thus appear to correspond to regular orbits. For centrally concentrated systems, low angular momentum trajectories were found to be systematically more unstable. This phenomenon is analogous to the well-known case of trajectories in generic centrally concentrated non-spherical smooth systems, where eccentric trajectories are found to be chaotic. The exponentiation times also correlate with the conservation of the angular momenta along the trajectories. For N up to a few hundred, the instability time-scales of N-body systems and their variation with particle number are similar to those of the most chaotic trajectories in inhomogeneous non-interacting systems. For larger N (up to a few thousand) the values of the these time-scales were found to saturate, increasing significantly more slowly with N. We attribute this to collective effects in the fully self-gravitating problem, which are apparent in the time variations of the time-dependent Liapunov exponents. The results presented here go some way towards resolving the long-standing apparent paradoxes concerning the local instability of trajectories. This now appears to be a manifestation of mechanisms driving evolution in gravitational systems and their interactions - and may thus be a useful diagnostic of such processes.