Oh well, I hope for you an update quickly fixes it for you and these other people.
Speaking so much about Shadowgrounds lead me to play it again a bit.
One thing I had never tried is the Keyboard-only aiming introduced in 1.04 and described in the readme (the commands are console commands, but I guess you could bind the commands to a single button since there are some "run_script_X" among the keybinds, although I have never tried such a thing).
Besides the Alien Breed III mod, people who want to get an old-school Alien Breed feel should try it since with this control scheme you no longer control where the aiming cursor will be, as the directional keys rotate Tyler.
Oh well, enough thread hi-jacking for now