well i know other CM7's had an Issue with the camera's only when switching from back to front, but i had thought it was fixed, maybe not tho
as for the person who has it stuck in the frozen state, you can try going into applications>manage applications> find Camera.apk and force close it
if it still loads in the frozen state do the above and force close it but also, clear data
Yeah that didn't work either. I ended up restoring a backup I had and switching back to the rear camera while on it. Switched back to this one and cameras working again. Probably try switching to front camera again to see what happens.