Hey guys I was bored this morning so I decided to make a quick little fps demo, I tried to keep the set up as simple as possible while still making the interaction feel natural. Could be useful to those of you wondering how to set this sort of structure up.
This blend file is intended to be easy to understand, and can be a nice starting point, it also uses character motion rather then simple motion for movement.
Note that the lights do not rotate while being parented to the character, this is because they are parented to a single vertex on the character.
There is additional information in the blend file.