Currently using Northern UI with the latest version of Morroblivion.
When I use the gamepad and cast levitation I'm only able to move horiztonally, but can't float up or down. Using mouse and keyboard for levitation works just fine.
I'm using an Xbox controller
I'm using an Xbox controller with NorthernUI & Xpadder(a similar program to Joy2Key) together and levitation works fine for me.
Maybe try using a program like Xpadder/Joy2Key to assign mouse movement to the right analogue stick, and WASD to the left analogue stick and see if that helps.
I use NorthernUI, and mouse
I use NorthernUI, and mouse and keyboard for levitation only.
The problem is with Northern
The problem is with Northern UI. I use an Xbox360 controller with Joy2Keys, and everything works fine (no Northern UI).