I know what you're talking about. It's part of After Effects. You have to make either something like an image react to the audio or the audio spectrum/wave effect. That can be done by pressing Ctrl+Y and creating a blank composition and adding the effect and then adjusting the appropriate settings. I would start there.

You definitely don't use your fingers to rotate. I'm pretty sure War_Hero made a camera script that allows for the tracking and smooth movement when recording. Check the lua section of the forum.

Pretty much all effects are done in AE, not manually. You may find what you're looking for in the tutorials section of http://chchcheckit.com/. Eli and Brandon make great AE tutorials for YouTube.