Stumpy: Looking up/down isn't possible in MDK, perios.
Just bought both MDK titles and came looking if you guys had cracked the case. I can't say I did either but if the bit I'm quoting is really saying what it seems to be saying, well, that's simply not true. There are keyboard bindings for looking up and down, and they work. The remaining issue is getting the mouse to do that. If that's what you indeed meant, I'm sorry, didn't mean to be a cheeky gibbon.
I have to have a look at it when I'm actually starting to play the game again. Now I'm more interested in how the game plays with an Xbox360 controller. Off to find out..
EDIT: Ok, I can report looking up and down, while functional, is something you don't want to assign to the mouse or an analog stick WITH looking left and right because while Kurt looks up or down, that's all he does. You can't move or shoot at the same time. Basically you can use it for sightseeing and planning an attack but you don't want to accidentally start looking around (up/down) during combat because Kurt will stop dead in his tracks to admire the scenery and to be blown to bits.