you can achieve this affect by tracing between the camera and the player, if there are any object, eg walls, then write a function to make them transparent.
Look up c_trace, i'm assuming that you are making a 3rd person game.
yeah the game is going to be top down(ish). OK well I guess models are the way to go. Going to have to get the second uv plugin then, else it'll end up looking pretty plain.