Question on Dynamic SQL Execution

Hi,
Our company is currently using Oracle 7 but will move to Oracle 8i soon. I am trying to execute a dynamic SQL statement in a function and it always error-out during execution. The SQL statement is NOT doing any update to a table. Its doing a select only. The function is being called during an execution of another dynamic SQL statement in a procedure. Here are examples of the code listing for the procedure and function:
CREATE OR REPLACE PROCEDURE TEST_PROC
lookup_cursor      integer;
ignore          integer;
VARvalue          number;
begin
lookup_cursor := DBMS_SQL.open_cursor;
DBMS_SQL.PARSE( lookup_cursor,
          'SELECT ' || TEST_FUNCTION || ' FROM DUAL,
          DBMS_SQL.NATIVE);
DBMS_SQL.DEFINE_COLUMN( lookup_cursor, 1, VARvalue);
ignore := DBMS_SQL.EXECUTE(lookup_cursor);
loop
     IF DBMS_SQL.FETCH_ROWS(lookup_cursor) > 0 THEN
     DBMS_SQL.COLUMN_VALUE(lookup_cursor, 1, VARvalue);
     ELSE
     EXIT;
     END IF;
END LOOP;
DBMS_SQL.CLOSE_CURSOR(lookup_cursor);
end TEST_PROC;
CREATE OR REPLACE PROCEDURE TEST_FUNCTION
lookup_cursor      integer;
ignore          integer;
VARvalue          number;
VARsql_string     VARCHAR2(200);
begin
lookup_cursor := DBMS_SQL.open_cursor;
VARsql_string := SOME GENERATED SQL STATEMENT;
DBMS_SQL.PARSE( lookup_cursor,
          VARsql_string,
          DBMS_SQL.NATIVE);
DBMS_SQL.DEFINE_COLUMN( lookup_cursor, 1, VARvalue);
ignore := DBMS_SQL.EXECUTE(lookup_cursor);
loop
     IF DBMS_SQL.FETCH_ROWS(lookup_cursor) > 0 THEN
     DBMS_SQL.COLUMN_VALUE(lookup_cursor, 1, VARvalue);
     ELSE
     EXIT;
     END IF;
END LOOP;
RETURN VARvalue;
end TEST_FUNCTION;
The error I received during execution of TEST_PROC is:
ORA-06571: Function TEST_FUNCTION does not guarantee not to update database
ORA-06512: at "SYS.DBMS_SYS_SQL", line 239
ORA-06512: at "SYS.DBMS_SQL", line 32
It may seem like the example procedure doesnt need to use a dynamic SQL execution to call TEST_FUNCTION but the actual code that I extracted from does.
Does Oracle 7 always treat the dynamic SQL command set as some kind of update statement? Is that a bug? I understand that the EXECUTE IMMEDIATE command in Oracle 8i will replace the old command set found in the above examples. Will using the new EXECUTE IMMEDIATE command in Oracle 8i solve this problem?
Thank you for any help,
Tony

In Oracle 7, for a function to be called from a select statement it has to follow the 'purity rule' that it does not modify any database table or package variable.
Probably you will have to use the compiler directive PRAGMA RESTRICT_REFERENCES (WNDS,WNPS) on your TEST_FUNCTION so that it can be called within a SQL statement.
This restriction is removed in Oracle 8i onwards.
Hope this solves your problem.
Regards

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    C:\>                                                                        
    C:\>sqlplus hr/hr                                                           
    SQL*Plus: Release 11.2.0.3.0 Production on Wed May 8 10:08:53 2013          
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    Connected to:                                                               
    Oracle Database 11g Enterprise Edition Release 11.2.0.3.0 - 64bit Production
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    Y                                                                           
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    Handle:     ms
    Status Level:     Newbie
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