I am having issues loading my 2007 AutoCAD.  When I select a drawing to
open it starts the loading process then locks up after the command
"press Enter to Continue" pops up and I hit enter. I have tried both
local and network files in it does it on both. Anyone have any
suggestions?

Why bother with 2007 if you have 2012?

Because we still have older projects that we work on 2007. If we use 2012 some of the stuff in 2007 wont work or show up in 2012. We are doing all new projects in 2012 and Revit.

can you give us some specifics?  What have you done in 2007 that either 1) won't show up or 2) won't work?  Generally speaking a file created with 2007 should be just fine when edited in 2012.  It's not like you are going in the other direction (or are you?).So, what kind of system are you trying to run 2007 on?  I'm willing to bet 2007 is a 32-bit program.  Are you trying to run it under Windows 7 64-bit by any chance?

I am running it on windows 7 but it has been working for a while.  This issue just started happening. Can a windows update cause this? I posted a screen shot on another forum but can't figure out how to do it here.

Yes, a Windows 7 update could potentially cause problems with older software like AutoCAD 2007.