I notice the up/down mouselook axis is reversed by default, but I can't find any option to change it. Is there a way to change the up/down mouselook axis? If not, I can get used to it and make it work.

Edit: Forgot to mention this is for Dark Forces II: Jedi Knight.

You can find the setting in Setup->Controls->Mouse . Use the checkbox for "Reverse direction" to adjust the axis.
I think it was mentioned in another thread that this is a problem that occurs when 3D Acceleration is enabled.

I tried that, but it only reverses left and right axis strangely enough. Ah, I have hardware mode enabled, that explains it. Oh I see, you have to click on that specific mouse axis option to change the correct one, that is quite confusing. Now I get it, much thanks. :)

Have you ensured you are selecting the Y axis? As I told, I was changing the X axis at first too, but then noticed that I must select the Y axis and then unclear the square. I have 3D accel. enabled and works like a charm (launching throgh the main exe, not via the shortcut to the launcher).

Edit: Ninja'd by my former self. Glad I could help you :)

Is there a setup option other than the normal "in-game" configuration method? I wanted to map my microsoft 360 controller.

I read in the manual that you can run a setup program, but I'm thinking the manual may be referring to another disk that came with the original game.

There isn't a setup utility with this game. Other LucasArts games like X-Wing Alliance and Rogue Squadron do have the setup utility with them, so you can find the relevant exe and run them, but this game doesn't. Maybe it is because the original disc didn't install it to the hard drive and needed the CD instead, like you say, but I'm not sure.

Do the in-game settings not allow you to use the 360 controller as a joystick input?

Jedi Knight: Dark Forces 2 definitely allows you to map the keys. From the main menu choose Setup and then choose Controls. You then get options for Keyboard, Mouse, Joystick. You can then map the keyboard buttons.

Damn this sucks. I was looking forward to playing Dark Forces with my controller. guess i'll have to play xwing instead. Thank you!!

Can you clarify which game you are playing? The OP stated it was Jedi Knight: Dark Forces 2, but it sounds like you are wanting to play the original Dark Forces, so I'm a little confused on what game you are trying to play.

Assuming it is Jedi Knight: Dark Forces 2, as that is what the OP posted about, then your comment saying "I wouldn't mind playing with the keyboard but there is no setup to map the keys" is wrong, as I then listed the menu options to get to the in-game keyboard re-mappings.

If it is the original Dark Forces that you are playing, you can get a modern-ish control setup by using a mixture of the DOS setup program and the DOSBox keymapper (and I then add in GlovePIE to get my mouse to look up and down). You could then use something like Xpadder to control the game via your 360 controller. Don't know why you'd want to, myself, but it is definitely possible.

I apologize for the confusion. I'm new to this website, didn't realize the thread was for DF: II. Yes i'm talking about the original Dark Forces game that i've been having issues with. Thanks I found the DOSbox program.

No worries. It can be quite confusing due to the way that the GOG forums are grouped into game series. But yes, now that you've found the Dark Forces 1 DOS setup program that you can use via DOSBox, you can then use Xpadder (or similar, such as Joy2Key, Pinnacle Game Profiler, etc) to map your 360 controller buttons to the keyboard keys, and that way you can play with the controller, should you really want to do so.

Thanks for the help. I also found the original system setup with is located in the game GOG file under 'launch settings' however being that this game is created way before advanced gaming with 360 controller it's a little hard, because the 'look' left/right up/down is slow. it's still fun to play. i'd prefer the typical WASD keyboard but I need to do as use suggested and map the mouse to look.

Thanks for all of your help!

If you want a modern-ish control setup using WASD and mouselook, use this guide here:
http://steamcommunity.com/sharedfiles/filedetails/?id=286364447

It is very similar to how I set the game up to play.