Help with "Movement Settings"

[Krovoc]

My issue is related to camera and character movement. Pretty much it seems to me as if I have two options when using a controller:

1) the camera is fixed to my back, but the character's movements are limited to forward, back, left right. Back is especially awkward. (Standard)
2) The camera has a mind of it's own, but I'm able to move my character around as I would expect. That is to say my character faces movement. (Legacy)

I've tried getting use to one or the other, but so far have failed.

Looking this up online came back with mixed results. Some seem to say that there is a way around it, others say I'm SOL. I asked some people in the game, and they said it can be done, but weren't sure as to how.

Work arounds are also welcome. I'm using a Steam Controller, so I do have a fair bit of customization. For example, I've tried having a right click toggle button. This does provide the camera/character movement behavior I desire, but it really messed up the UI.

edit: The camera and character move as I expect when in first person mode...but then I'm first person mode. That has it's own issues. I was trying to work through this with someone a bit ago, and he wasn't having the issues I described. So what is wrong?