i don't use A7, but i don't think they've changed the way you code that much?

try
Code:
///////////////////////////////////////////////////////////////
#include <acknex.h>
#include <default.c>

///////////////////////////////////////////////////////////////
fps_max=100;

ENTITY* picture;

function fncLookAtObject(ent){
	me = ent; //set me as ent that's been passed, now this function can be used more than once =)
	var camera_rot[3]; //declaring this a function will make it local to this function only
	vec_set(camera_rot,my.x);
	vec_sub(camera_rot,camera.x);
	vec_to_angle(camera.pan,camera_rot);
}

function fncCreatePicture{
	picture = ent_create("untitled.bmp",vector(0,0,0),null); //you had to assign an action in A6, not sure about A7 (that's the null part)
	//for vector(0,0,0) you can put nullvector

	fncLookAtObject(picture);
}

function main() 
{ 
	level_load("myLevel.wmb"); //change this to your level name
	wait(2);

	vec_set(camera.x,vector(0,-500,0); //sets the position of the camera

	fncCreatePicture(); //calls the create picture function =D
}


Hope this helps... if A6 didn't get swept away too much =/