How to achieve an isometric view camera setup In a 3D game?

No clue what you mean by “he looks like his falling off the level”? You mean like Camera Lags behind the movement? There is a setting for that under Camera Lag its turned off by default and should if you dont want the Lag to happen.

Asside from that Play around with the Camera Field of View or if you want real Isometric change it to Orthographic. But be Warned Orthographic has currently some serious issues displaying a 3D Enviroment.