Tried it in Skype and a couple of other programs like gstreamer-properties. Actually gstreamer-properties manages to display the image for a fraction of a second, but then it goes blank and series of errors like this are generated:
libv4lconvert: Error decompressing JPEG: unknown huffman code: 0000fffb
libv4lconvert: Error decompressing JPEG: unknown huffman code: 0000ffff
Infact, it's pretty similar to this bug here: https://bugs.launchpad.net/ubuntu/+sour ... bug/502866
However, I didn't update the kernel or anything, it's a fresh install. As a matter of fact, I tried running it from the LiveCD and I get the same result. Even after updating the kernel and all software, I get the same result.
Any ideas folks?