Correction, camera does work. Better to say it works on Galaxo, GAOSP 2 Beta 3, GAOSP 3 Beta 1 or nightly (for Beta 1 and nightly there seems to be problem with camera firmware mystically disappearing and making camera not working - for some users). In GAOSP 1 there are many things that don't work.
Your only choices are:
1. Galaxo - if you want a taste of Donut (Android 1.6) on your device. The best responsive and speedy ROM you can get for I7500. Be warned; you will have not so many/little applications to choose from on the Market. Why? Cause many devs are now developing for Android 2.x and higher.
2. GAOSP - if you want to sacrifice some speed and responsiveness and you want "more" applications to choose from the Market and try a taste of Froyo or Gingerbread (based on CyanogenMod 6 & 7). You can return some of the responsiveness by using class 6 (or higher) microSD card. Turning on choices like swap, JIT, compcache, fudge-swap (available only in GAOSP 3 nightly),... There is dialer lag, but 2D games are gonna work and some 3D ones.
P.s: if you're going for GAOSP choose GAOSP 2 Beta 3 if you're using camera if not GAOSP 3 nightly (not Beta 1, 'cause the nightly is the latest and stable one). Hope it helps.
If you have anymore questions, just shoot.