The soldier model I think I found on a blog, the animations were done by hand in Fragmotion, but will eventually be replaced by actual mocaps. 

At the beginning of the video the player actually picks up the M4 laying on the ground.  It is pretty simple to do...

Vector3 playerLocation, itemLocation;
float player2item;
int itemCollected=0;

void main()
{
iObjectLocation(OBJ_xxx, playerLocation);
iObjectLocation(OBJ_xxx, itemLocation);
player2item = VectorLength(playerLocation-ItemLocation);

if Player2item <=1 && iKeyDown(iKeyCode("DIK_SPACE")) && itemCollected = 0){
    iObjectHide(OBJ_xxx);//Hide Item
    itemCollected=1;}
}
This script should work, unless there is a syntax error somewhere...

Cool and thanks for the script. Do you know anywhere I could find such a model?
Great job with the camera! I like the camera angle but may be a little bit to far out, for anybody to care about detailed models and terrain.

Here is the script copied and pasted directly from my project
Vector3 ammoLocation, playerLocation;
float a2PL;
int ammoPicked =0;
ObjectLocation(OBJ_22,ammoLocation); // GET ITEM LOCATION
iObjectLocation(OBJ_44,playerLocation);//GET PLAYER LOCATION
a2PL= iVectorLength(ammoLocation-playerLocation); //COMPARE ITEM LOCATION TO PLAYER LOCATION
if (a2PL <= 1 && ammoPicked ==0){//IF PLAYER IS CLOSER THAN ONE METER...
                  iObjectStart(OBJ_220); //START ITEM COLLECT SOUND
                  iObjectHide(OBJ_22);//HIDE ITEM
                  ammoPicked=1;}//CHANGES STATE TO ITEM PICKED UP
sorry for the confusion...
psiko, what do you mean about mixing floats, ints and Vector3?