You can not animate the camera or lights or anything like that
I don't think you quite get what I mean. Here is a more detailed description-
On the scene you have no background. The entire visual part of the scenery is a 3d actor file (hereby referred to as the actor). If the player wanted to turn right (perhaps by pushing a key, or clicking to turn like in Myst), the actor would rotate left, and then any entities would move with it (though not move in 3d space, they would merely move in a 2d space and, if possible, be scaled horizontally depending on angle). There would be no camera that is rotating, everything would be rotating around one center point where this "camera" would be.
The two problems that I can think are-
1. Collisions. Can you rotate a .3ds Geometry File in real-time?
2. Lights. Can lights be moved in realtime, or are they "baked"?
Now collisions would not be an issue in a first person game with predefined turn and movement rates (like Myst). But in a third person game or in a first person game with variable speed and rotation it would obviously be a problem (unless you can rotate the Geometry Files, which I doubt). Lights would be the real deal-breaker (except, of course, in a 2D looking 3D game).
And on it being painful to design scenes this way, I think if done right it wouldn't be THAT bad. Essentially the entities wouldn't be that bad once a base formula was made to properly move the entities and (if possible) scale their sprites with turning. I think this is most realistic in a Myst-style game (with, like I stated above, predefined turns and movements), and once the base setup was done I would MUCH rather do it this way then render FMVs - but then again, I'm not much of an artist.
But yeah, I'm just thinking - sorry if I'm being bothersome or newbish

Thanks.