Reality vs. Games: Speed: a lot faster than in games, watch the videos. Laser guided: NO. In real life, the AT4 is a LOT faster than in all games and movies. In real life, you can't see the warhead/projectile while it flies. See the movie to get an impression, how fast a rocket is in real life. Firing inside buildings: Yes. As you can see in the videos, it is possible to fire that weapon even in very narrow spaces.Also this video shows the different modes (against structures or to breach walls ("mousehole mode")).    

http://en.wikipedia.org/wiki/RPG-7