Make sure your arming status is either in safe or arm mode as well. Inorder to see the new keyboard commands, I hade to delete the keyboard.lua file in my savedgames directory. The key is RShift-M to drop the sight
Mastiff,
You need to turn on the sight. The switch is on top behind the targeting card. You also need to turn the intensity up by using the dial. By default, the intensity is turned way low