People walking around

I'm not even sure where to begin looking. I would like to have a bunch of random people walking around during game play on there own accord. Any pointers or search terms to get me started? Birds would be cool too!

here is a script, you just plan the waypoints, the rest is in the script. It randomly selects waypoints and travels to them.

#pragma strict
var waypoint : Transform[];
var speed : float = 20;
var currentwaypoint = 0;
var loop : boolean = true;
var walkanimspeed : float = 0.6;
var rotatespeed : float = 4;

@script AddComponentMenu ("AI/AI people")
function Awake () {
waypoint[0] = transform; 
}

function Update () {
  if(!GetComponent(Rigidbody)) {
  Debug.LogWarning("there is no rigidbody atttached to the object!");
    return;
  }
  if(Physics.Raycast(transform.position, transform.forward, 5)) {
   transform.Rotate(Vector3.up, 90 * rotatespeed * Time.smoothDeltaTime);
  }
   
  
  if(currentwaypoint < waypoint.length) {
  
   var target : Vector3 = waypoint[currentwaypoint].position;

   var movedirection : Vector3 = target - transform.position;
   
   
   
   var velocity = rigidbody.velocity;
   
   if(movedirection.magnitude < 1) {
   animation.CrossFade("idle");
   //currentwaypoint ++;
     currentwaypoint = Random.Range(0, waypoint.length);
   } else {
    velocity = movedirection.normalized * speed;
    animation["walk"].speed = walkanimspeed;
    animation.CrossFade("walk");
   } 
   
  } else {
  
    if (loop) {
    currentwaypoint = 0;
    
    } else {
      velocity = Vector3.zero;
    }
  
  }
   rigidbody.velocity = velocity;
   transform.LookAt(target);
}

Check the Virtual World example in the character customization demo. http://unity3d.com/support/resources/example-projects/charactercustomization

This is a demo of the Virtual world where people spawn randomly and start walking. http://unity3d.com/gallery/hosted-demos/virtualworld.html

You can use the same to recreate the environment in your game.

For birds, look at the Island Demo tutorial.

Is the second demo available for download? I would like to look at the script involved. Thank You!

Take a look at UnitySteers examples too, they provide a TON of functionality, like flocking, neighbor/obstacle avoidance, wandering, and more:

http://www.arges-systems.com/articles/35/unitysteer-steering-components-for-unity

http://www.youtube.com/watch?v=POUbAsr-6q4

Not the best tutorial ever made, but his series on AI covers movement with waypoints, etc, covers what you want pretty well!

Here, I can help:

http://tinyurl.com/3z9e4sm