If you are working on Windows, you might find that the movie at http://nonlinear.openspark.com/tips/3D/followCamera/ may be helpful.
It uses the OSControl xtra which is now discontinued, but can still be downloaded from http://xtras.openspark.com/index.php?page=OSC_demo. (There is no version of the OSControl xtra for Mac Intel). The 3D navigation is completely independent of the OSControl Xtra, so you should be able to replace the controls with Lingo-driven ones.
You might like to browse the other demos at http://nonlinear.openspark.com/tips/3D/, in case there is something else which you find useful.
I thought maybe creating a simple world in 3D studio max and importing it into director, however if I did this, how would I make this world playable once imported?
Any ideas, links to tutorials, etc would be greatly appreciated.
Dean Utian's 3D tutorials at http://www.deansdirectortutorials.com/ demonstrate how to set up and navigate around in a 3D world using the arrow keys if you already have some 3D models made in another program. Dean's more advanced tutorials use a character named Mr. Tofu but his 3D Lingo tutorial shows how to build a 3D primitve sphere. You can build and apply shaders to planes, boxes, and cones similarly and then use the same concepts to navigate a block bus or truck through a block city built on a ground plane or something of the sort.
3DS Max seems to be best suited for making models and animations but if you don't have access to it, 3D Canvas Pro will enable you to make or use pre-made models(by importing them as .obj's), animate them either with simple keyframe animation or bone animation and export the files to .w3d for use in Director. Its IK system is a bit ackward as compared to 3DS max but it only costs $69.00 and has a lot of capabilities. 3D for the Web by Carol MacGillivray and Anthony Head is fairy easy reading has a lot more depth on setting up environments and rigging characters for use in Director with example files on their CD.