Thanks Stadi, I have actually had my character animations as far as movement go working for some time. I was mostly wanting other viewpoints and to know how the original HJ characters did it. That being said, it coincides with my findings that not making turning animations is the way to go, although turning in place does need its own animation.
Scott, thanks for your input as well. I think I will be doing camera controls like the ones in Everquest 2, where you click and drag with the left mouse to look around, and right click and drag to turn. You can also use the arrow keys or WASD keys for moving forward and turning, instead of using the keys for side strafing. If I remember correctly, in EQ2 you hold the CTL-Arrow key to side-strafe.
I like to give players the choice of first or third person, although I haven't decided for sure if I want to use tabbed-targeting or aimed targeting, and that will affect further design decisions.