Anyway, I did a lot of dabbling with this bastard incarnation of Kyo. Needless to say, he's been improved.
Normalwise - no improvements. They're all the same. This isn't bad since most of his normals are generally similar to Shin Kyo's. However, one thing to note, his standing CD does a HARD knockdown. Can't follow it up with anything. Only does the hard knockdown if done by itself. If you use a CD Counter it knocks them back like a normal CD Counter does.
Roll - They copy-pasta'd (ugh, I thought we were done with this SNK!) Kyo-2's slide animation from KoF '99. Game-wise, nothing different from a normal roll.
Command attacks - f + B hits the same, but he says what Kyo says in 2k2 when he does a f + B off of a normal. I hear "Kono...!" but someone can correct me on this.
Specials - A majority of his specials stayed the same, except a couple things.
HIS MU SHIKI NOW COMBOS OFF OF A DOWN B DOWN A. THIS ALSO MEANS HIS MU SHIKI IS FASTER (though it lacks 98 Kyo's invulnerability). That's right, you can do the infamous tap combo into the Mu Shiki with ease. This is a HUGE improvement to the one glaring flaw Kyo-2 had in KoF 99.
C Oniyaki hits for two hits against jumping opponents. Can't remember if that was the case before, I remember it hitting for one and him getting no advantage off of it since he was recovering from the Oniyaki.
New specials -

SDM Mu Shiki (qcf x 2 + AC)- This is not technically "new", but Kyo-2 didn't have access to the SDM version of the Mu Shiki in KoF '99 without being in red life. Here, it's a regular SDM. And to top it all off? It ALSO can combo off a down b down a (!).
MAX2 - Another mugen-ized special, but it's still very useful. It's basically a ranbu-style super (though it only does 3 hits). Kyo-2 runs at you at a lightning fast pace, shoulder rams you (standing CD), grabs you with the Kototsuki (HCB + K) then holds you there while gathering chi before blowing you up. Basically it's a overglorified version of his Kototsuki. Combos EXTREMELY well. You can do this off a down b, down a, f + B combo WITHOUT requiring a corner.
MAX Mode possibilities
Kyo-2 can also abuse MAX mode almost as well as his real version can. You can't do Aragami --> Dokugami loops, but that doesn't matter. You can start off a max mode combo with the Aragami though, and it will cancel into the Dokugami, but you can't cancel back into the Aragami (so basically the Aragami can only be the starter of a MAX mode combo). HOWEVER, you can do 1 hit of the Kototsuki after the Dokugami and loop it back into itself (similar to SvC Kyo's loop). Or if you wanna be like that fag Iori, you can do Kototsuki (1 hit) into the C Oniyaki (1 hit) and then loop it back into the Kototsuki or Dokugami.
Also at any point during this loop you can EASILY cancel into a DM or SDM Mu Shiki or his

On top of that, Kyo-2 can super cancel off his Kototsuki into the DM Mu Shiki or


More to come. Needless to say. KoF 2k2 UM - WANT GAEM, GET GAEM.