Hover the mouse over the bone channels and hit "a." This selects all the bones in that channel. Now hover the mouse over the 3D window and insert the rotation and location. This is where the bone channel comes in handy and speeds up animation. You can select some bones, or all the bones, from the Action Editor instead of trying to find and select them in the 3D window.
Now go into top view (numpad 7) and position the arms in a more natural walk position. Once more select all the bones in the Action Editor and insert their rotation and location.
Now go into side view (numpad 3) and position the hands in a more natural position. Once more select all the bones in the Action Editor and insert their rotation and location. (I'll abreviate this last sentence as A+I+locandrot. A key, + I key, insert location and rotation.)
Now we're going to copy this pose and paste it's opposite for the next step. So select all the bones in the Action Editor and press the little arrow button underneath the 3D window. This copies the positions of the bones to the buffer.
Now press the up arrow key to advance ten frames. Now press the paste flipped pose button. The character should now be exactly the opposite (in respect to left and right) as he was before. (e.g. His right foot is now forward and his left foot is now back, etc.) A+I+locandrot.
Ah, but we actually want him to walk forward. Not in place. So how do we do that? Easy, the foot that was originally forward (Foot_Root.R) shouldn't move forward or backward if he's taking a real step, since he's putting all his weight onto this foot. So, delete the new key for Foot_Root.R on frame 11, and duplicate the old keyframe by selecting it and hitting shift+D. Move the key to frame 11, holding down ctrl as you do so. Holding down ctrl, makes sure the keyframe will land exactly on a frame, and not inbetween.
But now he looks weird. His feet are in the same position, one is stretched waaay out of whack. What is going on? HELP! Alright, he's moving forward, so grab his torso bone (you can select it in the Action Editor) and the Foot_Root.L bone, and move them forward along the global y-axis (g+y) about 14 blender units, and insert their locations and rotations.
Whoa! He's starting to walk. A little. Now all you have to do is press the up-arrow key again so we're now on frame 21, and duplicate the orginal keyframes, and move them to frame 21. Easy. Waaiiiit, he's all weird again. Well, now you have to do the same thing from the last step again. Only this time with Foot_Root.L. So, duplicate Foot_Root.L's keyframe from frame 11, move it to replace the one on frame 21. Grab torso and Foot_Root.R and move them forward along the global y-axis, until it looks right.
Note: It is at this point where you would repeat all you've done until ludwig has arrived at his destination, or walked as far as you want him to. For simplicity, I've kept it to two steps here, but I add another two steps later to show how it can be done when there's keyframes all over the place.
So now he's sliding forward, great. But he needs more, a lot more. Alright, go to frame one, then move forward three frames. You are now on frame 4. This will be his "down" position. Grab torso and move it down a little, grab Foot_Root.L and move it up a little. Grab Ball_Heel_Rotation.R and rotate it so that his right foot is flat on the ground.
Great, now select Torso, Foot_Root.L, and Ball_Heel_Rotation.R. Copy them to the buffer. Move to frame 14 (or three frames after the second main pose). Paste the flipped pose. Now select Torso, Foot_Root.R, and Ball_Heel_Rotation.L and insert their locations and rotations.
Good, good. Now for the "up" pose. Go to frame 11, and move three frames back to frame 8. Now grab Torso and Foot_Root.L and move them up a little. A+I+locandrot. Now copy those bones to the buffer. Move to frame 18, paste the flipped pose. Now select Torso and Foot_Root.R and insert their locations and rotations.
Now play back your animation (alt+A). Prett sweet, huh? We're getting there. But WHOA! What's going on, on frame 6? His hand is passing through his thigh. Definately bad.
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