If your looking to build something like a simple light I found it easier to attach a Swivel component to it then a sprite http://wiki.openuru.org/index.php?title=Sprites_and_Billboards_in_Max
The issues I had with sprites is that it rotates on all three axis's unlike the light on the railing for the Relto stairs which only seems to rotate on one axis. the swivel component is simple to use and does not require all sorts of complicated component additions. basically attach and set the options to what you want and your good to go
also a weird example of what else you can do with Swivel component is the crystal skull in the Stonehenge cavern which if you notice seems to be rotating to follow your movement
I tried using the sprite component on the skull at first but found it rotated on all three axis's which did look kind of odd even for me