clouds?

is there a way to make it appear there are clouds in the sky? would I have to make a sphere and add a sky texture to it? or could I just load a texture as the camera color? (could the last option work?)

you can use combination between CameraClsColor as a base blueish color and then populate sky with quads textured with nice textures and make them always facing camera while moving(rotating) slowly around your level

Another simple way is to use a piece of software like Terragen or Bryce or Vue to generate a set of images to use as a skybox. Have a look at some of the demos in the samples folder to get an idea of how this works.

This is actually a loaded question. Will you just be walking on the ground where a skybox would work, or will you be in an airplane or something. That's much more complicated to get good results.