If I unstand you right, the problem is that the model isn´t completly invisible even if the camera is on your models position.
You have to set the camera genius in the players action.
It should look sth like this:
camera.genius = my;
Also search for genius in the manual.

Lite-C Tut. 1 Lite-C Tut. 2 Lite-C Tut. 3 (en)
Shader Tutorial (ger)

http://www.slindev.com