Before trying I did a clean Gstudio 7.06.1 installation.

#1 installed the beta 7071
#2 installed the templates t7install.zip
#3 installed the updated wdlv.dll
#4 created blank level with project wizard and saved in MyGame\A7Lesson0036
#5 added terrain .hmp to the level 0,0,0 set my polygon flag in WED
#6 added player model .mdl
#7 added t7_biped_player action to player model
#8 build level, save level, run level
#9 same problem als jeffmorris no WSAD, cursor or mouse movement

[Edit1]
To get the movement working after creating a blank level, adding terrain and player model. I had to edit the myproj.xml and copy/paste the entity code from the outdoor-level myproj.xml, it seems that this information was not put inside myproj.xml after creating a blank level with the project wizard.

myproj.xml (needed to add this by hand)
Code:
<Entity name="speler_mdl_001" parent="t7_biped_player">
<Component name="collision">
<Edit name="type" value="2"/>
</Component>
<Component name="control">
<Edit name="type" value="1"/>
</Component>
<Component name="head">
<Edit name="offset" value="0,0,85"/>
</Component>
<Component name="health">
<Edit name="health" value="77"/>
</Component>
<Component name="objType">
<Edit name="value" value="0"/>
</Component>
<Component name="physBiped">
<Edit name="forceScale" value="22,12.5,0"/>
<Edit name="aForceScale" value="6,0,0"/>
</Component>
<Component name="weapon">
<Edit name="startWeapon" value="1"/>
</Component>
</Entity>

Project Manager: 2.0

T7 Path: C:\Program Files\GStudio7\templates\xml\
Proj Path: C:\MyGame\A7Lesson0036\

Behavior File: Behaviors.xml (t7)
Component File: Components.xml (t7)
Warning(LoadProperty): CMP(animate): Property "animGroup" using unknown type.
-->"animGroup"
Warning (LoadProperty) "brain: Property found without name. Not added.
Camera File: Cameras.xml (t7)
UI File: UI.xml (t7)
Animation File: Animations.xml (t7)
Weapon Def File: Weapons.xml (t7)

smile