I do not have the carlevel template that people are talking about in their work folders where lite-c is installed. Does anyone have a link to this file?

I guess you need Gamestudio Extra or higher.

Do you have any other advice to move my car realistically?
I would prefer to use physics, but I can not seem to get that to work!

The manual, my friend. The manual.

I looked in the manual and I used all the properties,but I want to move the entity using the arrow keys. here is my code:

ph_setgravity(vector(0,0,-500));

phent_settype(moke1,PH_RIGID,PH_BOX);
phent_setmass(moke1,1,PH_BOX);
phent_setfriction(moke1,90);
phent_setdamping(moke1, 40, 40);
phent_setelasticity(moke1,75,20);

moke1.pan = 25 * time_step* (key_cul - key_cur);
moke_sp.x = moke1.pan + 25 * time_step* (key_cul - key_cur);
moke_sp.y = 50 * (key_cud - key_cuu);
moke_sp.z = 0;
//phent_addtorqueglobal(moke1, moke_sp); phent_addvelcentral ( moke1, moke_sp );

When I do this, the car stays still and freaks out!
Any help would be great!

You can't directly move objects in tandem with physics. You use one or the other. It also looks like you haven't set up any constraints for wheels/chassis/etc? If you try to use things like c_move or my.pan with physics at the same time, you can actually crash your computer. I've done it before.

I'm also interested in how to set up constraints for vehicles physics though. No good examples exist, and the manual is pretty vague.