I have the Trumpeter kit and am ready to start. Anything I should know about coloring inside and out (painting directions say solid green, including wheel hubs)? Also, is the machine gun wrong for this particular vehicle and era, and if so, what is the right one?

If you talk about BTR-60P inside color is russian green like the outside.
You could paint also in two-tone camo, green and sand, for a vehicle of soviet navy and adding white invasion strips, they were very common during the big maneuvers of those years.
During these events the MG was normally mounted on front glacis: PKM or SGMB in 7,62mm or Dshk in 12,7 mm.
Most common was SGMB, but also the Dshk of the kit is ok

Thanks so much!

I assume the army used them too at the time. I don't get the impression that the Soviet Navy did much land fighting, but I could be wrong.

Thanks for the driver's station pictures! But with the original open=topped BTR-60, was the driver's station (which was partly enclosed) white inside then too?

No....in 1962 only BTR-60P with open troops compartiment was in service with soviet army and soviet naval infantry , and interior were green
The pictures show a BTR-60PB o later version, in service from 1966

The BTR-60P had an all green interior much in the same manor as the BTR-40/152. You would not want any white paint showing in a completely open top vehicle, it can be seen from planes and helicopters too easy.



As far as the armaments goes, I've mostly seen either the PKT or PKM installed instead. You can still you the DSHK that comes in the kit even though mount is not correct.

Ironically, the kit gun might be more likely for the era:

http://en.wikipedia.org/wiki/PK_machine_gun