In the template there is a camera called handcam. If you add it to your scene with Append/Link, make sure you add the children of handcam also.
If you switch the active camera to this camera you can move around in blender with the mouse and the following keys:
W: Zoom In
S: Zoom Out
Mouse movement moves you up/down/left/right and sets the camera into motion
The zoom command works on the hand cam, but currently you can not move it with the RotX, RotY, RotZ, LocX, LocY, LocZ commands.
When you switch back to a regular camera then back to the hand camera, the hand camera will pick up where the regular camera left off. This means that it’s a good idea to have the initial zoom, position and rotation of the hand camera and your default camera to be the same. Note the hand camera can also be the default camera.
If you use CamLookAt with the handcam the camera rushes towards the object you are looking at and you lose control.
Thanks to Social and others in the Blender Artists Forum for the handcam logic bricks. They are based on the “first person shooter” examples.