I have a game that one of the corps have taken ALL of the ships in essence locking all other players from the game. I tried to find a setting to add more ships but if its there could not find it?

no, this setting can only be changed during BigBang.

When i first started playing, I used Traitor's "newbie edits" to get an idea of how to set up a game:

http://tw-cabal.navhaz.com/strategy/twgs_settings.html
http://tw-cabal.navhaz.com/other.html

There is a setting , some might think its unethical to do during a game but will resolve this issue ..

In T-edit option (D) - remove derelict spacecraft

That will eliminate all unmanned ships from game freeing up
ships for players.
Although the players locking the game can buy them all out again.
Next Bang you could also increase the number of max ships in game
to help prevent this from happening.

But the simple way is to resolve this is to make an
Announce.ANS in each game stating RULES for no buy-outs
and make the max number of ships in big bang high.

I'm sure there may be issues with this suggestion but its my take on it.

Vid Kid