Vector3 mouseOffset = new Vector3(-Input.GetAxis("Mouse Y"), Input.GetAxis("Mouse X"), 0f);
camera.transform.Rotate(mouseOffset, Space.Self);
//auto-up the lazy way:
camera.transform.LookAt(camera.transform.position + camera.transform.forward, Vector3.up);

There. I win.

Thanks David for showing me the GetAxis("Mouse X") and Y. You have saved many soft cuddly things from certain doom.

Screen.lockCursor is a bit glitchy in both WebPlayer and the Unity Editor itself but it kinda works in StandAlone version. I would suggest writing a bit more advanced mouselook script to make it less buggy.

private var xtargetRotation : float=10;

private var ytargetRotation : float=10;

var xSensitivity : float=7; var ySensitivity : float=6;

var min = -60; var max = 60;

var smoothing = 1;

function LateUpdate() { var yAxisMove : float = Input.GetAxis("Mouse Y") * ySensitivity; ytargetRotation += -yAxisMove; ytargetRotation = ytargetRotation % 360; ytargetRotation = Mathf.Clamp(ytargetRotation,min,max);

var xAxisMove : float = Input.GetAxis("Mouse X")*xSensitivity;
xtargetRotation += xAxisMove;
xtargetRotation = xtargetRotation % 360;

transform.localRotation = Quaternion.Lerp(transform.localRotation, 
                             Quaternion.Euler(ytargetRotation,0,0),
                             Time.deltaTime*10 / smoothing);

transform.parent.rotation = Quaternion.Lerp(transform.parent.rotation, 
                             Quaternion.Euler(0,xtargetRotation,0),
                             Time.deltaTime*10 / smoothing);

}

This one is mine and it works like a real head. The body rotates just in the Y axis and camera in the X one. But if you wan't it as one object then change the code where i set the rotation. To set it up just make a player, parent a camera to it and just add this to the camera.

-- David