The rigging system is pretty much the same, although i’m not sure what the tutorial does, it would probably work. :). That said, animating is a bit different and takes a bit of setting up, although there are plenty of tutorials.
As for the lighting question, if your using glsl, there is an option in the render panel for lights, simply turn it off :). Another way is to turn on shadeless for all the materials. If your using multitexture or single texture though, I’m pretty sure that if no lights are added to the scene it is treated as shadeless anyway. Hope that helps!
The only ‘crazy’ thing that is done here is that he is using b-bones to give his character a floppy appearance. Most of the normal rigging works in the BGE as well. But in general, you want to have fairly simplified rigs in the BGE because they can take a lot of resources to calculate. For example, having a bunch of IK chains can be a resource hog.