No idea on how to fix it but isaac said he did not recommend trying to use the video camera. This might have been why. I'm sure you already know my solution, reflash. But i would wait around until someone else adds their two cents.
Thank you for the response.
The camera is currently back up and running, although it took a power down and not just a simple reboot to bring it back.
What killed the camera for me was the Barcode Scanner app. After clicking on Barcode Scanner it would never initialized so I had to hit the Menu button, which brought up the Force Close or Wait dialog. Waiting didn't work, so I forced it closed and tried the camera which again returned the error previously mentioned.
After playing with the camera again, which runs, but is buggy to the extreme, every application now opens in landscape. Another power down fixed that but geez.
Wow, I'm finding out that CM7 is a buggy mess and I'm only on day 2 of this test drive. Don't get me wrong, I'm very appreciative of the hard work that's involved in creating a ROM but shouldn't a lot of debugging be included in that creation process before it's released to the masses?
I don't mind being a beta tester, hell, I was one of the first members of the PS underground and I beta tested hundreds of games but I knew what I was getting and I didn't have to rely on my PS, PS2 or PS3 to do the things we expect todays smart phones to do without fail.
I'll throw in the being a n00b caveat, so as to hopefully not receive to much heat for my buggy mess comment, but I followed the instructions to a tee and heeded all of the warnings before installing CM7. Unfortunately, while beautiful, sleek and quick, it seems as though CM7 isn't quite ready for prime time, at least not on this Ascend.
Sorry, I hope I don't offend anyone, I'm just really disappointed that CM7 didn't meet my expectations.