Why is your PANEL definition inside the main function?! That's why your identifier (pTest_pan) is unknown in your game function. Use [code ] and [/code ] without the spaces to post code.

Code:
PANEL* pTest_pan =
{
	bmap = "main.pcx";
	pos_x = 250;
	pos_y = 200;

	button(100, 100, start_button.bmp, start_button.bmp, start_button.bmp, game, null, null);
	flags = OVERLAY | SHOW;

}

function main()
{
	screen_size.x = 800; screen_size.y = 600; screen_color.blue = 150;
	mouse_mode = 4;
}


function game()
{
	pTest_pan.flags &= ~SHOW;
	level_load("shooter.wmb");

	while(1)
	{
		if(winner == 1)
		draw_text("Well done! Red wins!", 10, 10, vector(50, 50, 255));
		else if(winner == 2)
		draw_text("Ouch! Green wins!", 10, 10, vector(50, 255, 50)); 

		wait(1);
	}

}




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