which blender version are you using=?
if you use 2.49 you should uncheck the game->ignore deprecation warnings and make them vanish (the console gives you all the informations you need for that)
to use the rotation instead of the position just exchange the o.position in the script with o.localOrientation and make the objects actuator rotate the object instead of moving it.
i looked at your file and you attached the script on the cam. dont know if you intended this, but i recommend you to create three properties in the cam, named x, y and z and press the little button labeled D to debug them. that way you will at least see, how the values change.
hope i could support you