Awesome cutscene.

Very sad and epic.

Set camera rotation makes your camera face a pitch/bank/heading in a global direction. To make things real easy to understand, it's just like how the pitch/bank/heading works for backgrounds EXCEPT it is reversed. So to face a background that's at 90 degrees heading, you want either 270 or -90 in your rotation sexp.
Now since its global, you need make sure the orientation is the same except for bank. So if your initial camera orientation is like 45, 0, 90 then your target orientation should be something like 45,45,90. I've had some odd stuff happen if bank goes over 90, but that might've gotten fixed in the RCs.
The fun stuff begins when you start using set-camera-host and -target. Those sexps make the camera sexps use a ship as its zero point for position or orientation. So if you camera-set-host a Karuna, then set-camera-position 0,0,-2000, the camera will always be 2000m behind the Karuna. You can move the camera around the Karuna as well, making awesome pan shots.