So I looked into the problem further. I'm not allowed to post links but it shows my aircraft at 25k and the enemy at 35k. My F-16A ADF 1990 against an Iraqi Mig-29A 1987. Two missiles (AIM-7M) fired at 18nm, both blind (for 4.5 sec at that point). The missiles lofted to 37k and 40k. It would seem that despite the shooters being below the enemy threat, the missiles loft puts it above the threat. Two problems come to mind for me. Firstly if the radar is only highlighting the enemy target the missile, I would assume, wouldn't have a problem spotting the target. Secondly, particularly in this image the AIM-7 can have its loft deactivated and the targets are 18nm from the aircraft. I would assume if the loft is that much of a problem they would have avoided it on the follow up shots.
thewood1, the game seems to show the seekers "blind" whilst being beamed. I haven't seen any PoH modifiers used at all, and the game is excellent at describing which PoH modifiers are in play through the combat log. When the game was first released it would only count the agility rating. Now it includes the agility rating, altitude, aircraft weight, the aspect, pilot skill, sometimes speed, and I'm sure I've forgotten a few more. Typically high performance aircraft do very well against poor accuracy missiles, but as the accuracy increases they become significantly more deadly. Ie two 35% missiles are far worse than one 70% missile. Countermeasures/jamming is counted separately, performs a little worse than I had anticipated but overall hit rates seem accurate.
c3k, beaming is usually exploiting that doppler notch rather than hiding behind the background, yes. However every aircraft I know of automatically switches off the doppler filter when pointed above the horizon unless manually deactivated. Earlier radars had no problem targetting threats above the horizon so there is no need to reduce the radar's effectiveness there. Hence the importance of remaining below the threat in western doctrine - whilst your missile range would be reduced you also reduce the ability for the enemy to defend and disrupt the ability of the enemy to threaten you (particularly against non-doppler radars).