You forgot the SYNC command
With the sync command you simply updating the screen. I have set it so it will update the screen with 60 images per second as you can see in the line "Sync Rate 60".
if you change it to 0 it will update the screen as fast as your computer can
Your code should look like this:
sync on
sync rate 60
hide mouse
make camera 1
autocam off
make object sphere 1,100
position object 1,0,0,1000
load image "water1.bmp",1
texture object 1,1
set sphere mapping on 1,1
set object specular 1,1
set object light 1,20000
clone object 2,1
position object 2,0,-350,1000
scale object 1,300,300,300
scale object 2,300,300,300
load object "space stationss.3ds",3
load image "space stationspace station.jpg",2
texture object 3,2
scale object 3,30,30,30
set object cull 3,0
set object light 3,0
do
zrotate object 1, object angle z(1)-0.1
zrotate object 2,object angle z(2)+0.1
control camera using arrowkeys 1,1,1
sync
loop
Hope that helped!