I tested Ubuntu 12.10 from a live USB and the camera works perfectly from there, so it's not a hardware issue, but a software issue.I even tried to run Skype as a root user to test if this was a change in permissions issue, but it still doesn't work.I have no clue as to how to debug this issue, or find whatever update or installation made it stop working.
It sounds like this could be the same issue since the live USB is probably running an older kernel.
I just posted an answer to a similar question, so instead of retyping the whole thing, see here: If this fixes your issue, please file a bug report or comment on the one I linked to in that answer so the developers know this affects Ubuntu 12.10 as well.
Hopefully if enough people report this bug it should get fixed soon.
Skype is an online chat, voice calling and video calling service that lets users contact other users with a Skype client application.
Skype software is available for both computers (Windows and OS X) and smart phones and tablets, including the i Phone, i Pad and Android devices.
Microsoft acquired Skype in 2011 and in 2013 merged Messenger (also known as MSN Messenger and Windows Live Messenger) with Skype.
I'm using Ubuntu 12.10 64 bits, on a Lenovo Ideapad U410.
I've been using the included webcam with Skype and Google Hangout with no issues.
At some point in time, I noticed on Google Hangouts some update made the cam stop working.
When I run So, now I test something like VLC to "Open Capture Device". Same thing on Skype, I test the video and the cam turns on, but no image.
At some point, the camera disappears from lsusb and I can't see it there anymore.