I looked at your code earlier, but I have been out all day and this is my first chance to respond.
First: set display mode wipes out direct x stuff, so, do that before you load your models and images.
Second: I don't see the need to declare camera 1, camera 0 is the default camera and it should be fine here.
I recomend that you move this:
Set Display Mode 1024, 768, 32
Sync On
Sync Rate 60
up, before you load your models and images.
and here:
make camera 1
sync rate 60
SET CAMERA TO FOLLOW 1, 3, 3, 3, 360, 75, 60, 1, 0
remove the make camera command (also the sync rate 60), and change the camera number in the follow to 0.
Give it a try, and I hope it helps
Whatever...