Hi! I'm new to Quest and coding in general. I'm sure this has definitely been asked before, but I can't find the topic. I noticed that when my character tries to do something, it automatically uses "You" in such things as "you can't take that" or "you switch it on" How do I change this?

(currently) only a few threads down (albiet a possibly mis-leading or unrecognized title of the same question you have here), see this link to the thread:

http://textadventures.co.uk/forum/quest/topic/eb0-na7oeegw8hhpjryqgg/is-there-any-way-to-change-the-pov-in-quest

it answers this question for you

(see richard's post, his first pic/screen-shot, at the very bottom of it, is the checkbox toggle for whether to do the 'You are in NAME_OF_ROOM' or not, as well as the other pics/screen-shots options/controls as well)

(or for more advanced usage, see Pixie's post on Template usage)

as for using 'he/she/it/his/her/it', there's the built-in 'gender' and 'article' String Attributes:
(but you got to know/learn how to use Attributes)

http://docs.textadventures.co.uk/quest/attributes/article.html
http://docs.textadventures.co.uk/quest/attributes/gender.html

Playing a "first person" game, told in "third person" could be a bit confusing...
Unless, what you are trying to do, is make it sound as if the player is following a person, or story, and you want it to sound as if the player is just watching what the NPCs are doing, but at the same time, controlling them...
IE:
.> get rock
You watch as she bends over to pick up the rock. She ponders why she get the rock and seems unsure why she has it.
.>drop rock
Not understanding why she has it, she drops it back to the ground where oddly enough, it rolls back to the same place it was before.
.>north
Remembering where she was going before being distracted by the rock, she climbs the steps to her apartment building and enters through the front doors.