Um, do you need the machine gun to move or the bullets? Normal 3D perspective will take of most of that.
Orient your bullets to match the rotation of the camera. Sync the bullet's position to match the tip of your gun. Then, simply use MOVE OBJECT to move the bullets down range.
The problem with a 2D cross hair is that it does not adjust for offsets and range. It's only truly on target if your shooting bullets from your eyes. It's up to you. You can either live with hip firing machine guns, tweak the trajectory of the bullets, or perhaps move the gun to the middle of the screen when you fire. Actually, the last idea could be pretty clever. Allow the character to choose hip firing for maximum visiblity or allow them to move the gun so the sights line up with the cross hairs and allow maximum accuracy with a good part of the screen taken up by arms and weapon.
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TAZ