Hello! Welcome to the Forums.
Quote: "can I incorporate a realistic storyline into this game?"
Yes. Just write a storyline. Post your storyline in Game Design Theory. They're always willing to give comments and criticism.
Quote: "people talking"
Yes. Using scripts, which you can search for, you can have a message displayed on the screen saying what you want to the character to say when the player walks up close to the character. This requires FPeye, and Photoshop or something. Lip syching is possible with a program called Crazytalk.
Quote: "and in-game movies of my character"
Yes. With the right programs (I use Fraps) you can direct a movie in FPSC, in which what you character sees is the camera. For this you'll need to be familiar with scripting. Just search for tutorials.
Quote: "waking up and when you stand in a a certain model you can make the model move with you in it?"
This has been done by another forum member, Plystire. Plystire might be able to help you on this, but it's not likely.
Quote: "This is all mostly ina third person view."
No. This is not possible. Only first person.
Hope this helps!
++Will++
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Go to the Models and Media section!