Thanks! I hope you get to play the game... and hopefully like it too
Yeah, the enemies & items in the game world are 2d, but the levels are 3d.
We didn't have a real 3d-artist and my blender skills were so rusty, that we decided to go with the 2d. It still meant that we had to draw a lot of stuff with our less-than-mediocre drawing skills, but it ended up rather well fitting to the absurd game world. I mean this wasn't going to be a triple-A title anyway, but just two dudes making a game for fun.
Most of the games levels are randomly generated (adding occasional static room with static content like obstacles, items and/or enemies) in the style of roguelikes, so the map generation generates list of characters that look like a map from some roguelike, and then we'll parse that and generate 3d objects to make the playable world.
I didn't remember to put it in my first post, but in case someone is interested, the code can be found in:
http://code.google.com/p/dungeon-of-aaagh/