I was in third grade, and my class has been following the Teacher in Space program. It was probably sheer luck we hadn't been watching it live. The school did have a television set up in the library tuned to network coverage. Our teacher took a moment to prepare us before bringing us down to the library to watch the footage.
I grew up outside Chicago and the Bears had just won the Super Bowl two days earlier. The thing that I remember most is how excited all of the kids were about the Bears and the shock of losing Challenger shortly afterward.
As for the guy who shot the video, the original article said that he lived in Louisville, KY, but had a vacation home in Florida, where the video was shot. His wife died last fall and the interim pastor at his church happened to be the archive director of the Space Exploration Archive. The pastor spent some time counseling him before his death, and that's how the he ended up handing over the video to the organization.