try adding
proc_mode = PROC_LATE;
to your camera code.

Code:
function camera_follow(ENTITY* ent)
{
	while(1) 
	{
		vec_set(camera.x,vector(-200,0,50));  // camera position relative to the player      
		vec_rotate(camera.x,ent.pan); // rotate the camera position with the player
		vec_add(camera.x,ent.x);      // add player position
		vec_set(camera.pan,vector(ent.pan,-10,0)); // look in player direction, slighty down      

	proc_mode = PROC_LATE;	
wait(1);
	}
}


A8 com / A7 free