But my Camera_OneFrame_Function is junk I made up on the fly, not really useful.

But there is a problem with what you have. Here is how I see it "should" be done. ( Leave main() as it is)
Code:

function Camera_OneFrame_Function()
{
   //normal contents of camera action while loop
   if(key_w)  camera.x += 5 * time_step;
   if(key_s)  camera.x -= 5 * time_step;
   if(key_a)  camera.y += 5 * time_step;
   if(key_d)  camera.y -= 5 * time_step;
}


action Normal_Camera_Action()
{
	while(1)
	{
		//default lite-c camera
		Camera_OneFrame_Function();
		wait(1);
	}
}


function pause()
{
	if(freeze_mode == 2)	freeze_mode = 0;
	else			freeze_mode = 2;
	//
	while(freeze_mode==2)
	{
		//continue camera while frozen
		Camera_OneFrame_Function();
		wait(1);
	}
}


"There is no fate but what WE make." - CEO Cyberdyne Systems Corp.
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