With this mornings update, there is now up and down looking with the TPV camera. The system also auto targets the AI that are targeting you. Stock script ranges are set pretty close, but duplicate the scripts and tinker with the ranges for the AI script and you should be able to get some good thing going.
There are three setting in the start marker with the character attached. These are accessible by left mouse clicking on the player start marker and choosing properties. At the bottom are the camera control.
Camera distance, height, and speed. Playing with these setting will show you in the editor what you are seeing. once in test game you can also adjust the FOV in the metrics panel (tab tab)
This TPV character will go threw a wide range of motions, but it is still being refined. So expect improvements.
Slowing the camera follow setting allows the camera to flow with obstacle, doors and tunnels and stuff, turn this down if you are clipping walls to much, some clipping should be expected in quick battle.
Intel(R) Core(TM)2 Quad CPU Q6600 @ 2.40GHz, 2400 Mhz, 4 Core(s), 4 Logical Processor(s), 8gb RAM, Nvidia gtx660, Windows 7 Pro 64bit