A simple 360 movement is what you want here (the built-in movements tend to be too buggy for most things).
http://sdrv.ms/YdIJBW
You'll see a few variables like "XPosition", "XVelocity", etc - those are just normal alterable values that I've renamed.
Also, you'll notice that the Y-related values are often negated (eg. 0-Sin..., -1*YVelocity..., etc) - that's because the Y axis in MMF2 (and computers in general) is inverted, so that 0,0 is in the top left corner.
A couple of other things:
* Angles and directions both start with 0 pointing to the right. For that reason, it generally makes it easier if you draw things like gun barrels so that they are pointing to the right (you'll see I had to add "+90" in a few places to make the maths work - it would have been easier just to rotate the sprite image 90 degrees in the animation editor).
* Under the bullet object's properties, there's an option called "create at start". It's good to untick that for things like bullets, because you don't want them to be created until the player shoots.