Anyone managed to get this KKND 2 working in multiplayer? Just bought it under the impression that multiplayer worked and I cannot seem to get it working for love nor money.

Try this:

Host-PC:
1. LAN hosting:
-- Get your IP-address (e.g. use "ipconfig" in the command shell window)
-- A firewall on your PC must allow incoming TCP at port 47624

2. Internet hosting:
-- If you're hosting for people to join via internet, get your external IP address (e.g. http://www.ip-adress.com/IP_adresse/)
-- A firewall on your PC must allow incoming TCP at port 47624
-- If you use a router (usually at: http://192.168.0.1), it must forward external connections to your PC (to PC's IP address at port 47624)
--- Configure something like Services or Port Forwarding at your router; Goal: Internet connections via TCP at port 47624 must be forwarded to your PC at the same port (usually your PC needs a static IP address within your LAN)

- Run KKND2 Krossfire and select Multiplayer Game at the main menu
- Type your gaming name
- Select TCP/IP
- Click Host

To join a game:
- Click Join
- Type in the hosts IP address in TCP/IP address box
- Select host's gaming name
- Click Connect

Been there, done that, gone so far as to download things like Tunngle to try and get connected via there ip address. Still nothing. Nothing we have tried has worked. what is worse is that we are trying to play it in the same house over our internal network and nothing we do seems to work.

Network configuration can generally be tricky, because a lot of software (firewalls, protocols, services etc.) is to be taken into account.

So at first, keep it simple to narrow the problem down.
Forget all the fancy stuff like Tunnels or whatever. This is an old game and needs old school network configuration.

You said, you're in the same house. Is it a Local Area Network or do you try to connect via Internet (which is possible, even if you're in the same house)?

Within a LAN, I'd suggest:
1. Turn off your Internet connection, so we can safely try some things
2. Turn off all programs that are messing with network traffic:
a) Windows firewall
b) Any other Firewall or Security Suite/Anti-Virus Software
c) Think about further programs that might interfere with networking on your PC
3. Make sure both computers have matching IP addresses
a) They must be equal except for the last number (e.g. 192.168.0.20 and 192.168.0.33)
b) They must be different from any other IP address in your network (e.g. network printer, NAS, mobile, etc.)
c) You see your IP address by opening the Windows shell and using the command ipconfig
4. Check if your computers can "see" each other
a) Open the Windows shell and use the ping command (e.g. ping 192.168.0.33). Try pinging your buddy's PC by using his IP address.
b) You should get a response from that PC
c) Now let your buddy ping you
5. The gaming host must be accessible at port 47624
a) When pinging is successful and you've turned off all network filter software, this shouldn't be a problem within a local area network. Try starting a multiplayer game

Let me know, if you don't know how to do some things I've suggested, so I can give you more details.
Also share some information about the PCs you are using (operating system, details about the network etc.), maybe there's something I've missed so far.