Thanks for the response, Nidhogg.
Now, just a little issue.
Take a look at a early build of my game - No, I'm not advertising:
http://www.savefile.com/files/1789215(You may need to open the WMB in your 3D Game Studio and run it from there)
When you do that, you'll see that the character (Peach) is facing the wrong direction, instead of the direction where the camera is facing (at the start, it's north). Mind you, the engine is mouse controlled for the direction of travel (by default in the Biped Template). I'm wondering if anyone can help me make Peach permanently face the same way the camera is looking (not having her face you, but look where she's actually going instead to her right).
I have rotated the model in MED and WED, and still no luck.
Thanks if anyone can help again!