First person camera / Terrain problems

I've seen a couple tutorials but I didn't notice in any of them how to change your FPS Camera Controller into a "LookX" as it tells me I Should, so whenever I start my game the camera literally moves my character around, meaning if I turn it too much it'll push my character off the terrain.

Except for that, when I don't move the mouse and simply move around with the WASD keys, teh character keeps falling off the terrain when it reaches bumps on the road. This probably shouldon't happen so how can I fix it?

Here's the link to the current beta: link text

Nevermind please, I switched to third person view and it works greatly! :D