For all those trying to debug problems with their original Labtec webcams (like the one above), I have a little hint. These webcams are admittedly a bit old. Some had 640×480 resolution, but most maxed out at 352×288. The original 0921 (ICM532 / 046d) chipset and hardware had very little low-light sensitivity and bad depth-of -field. Come to think of it, why the hell would you want to get this working in the first place ?!?
Anyway, Labtec’s new webcam drivers (10.X+) aren’t compatible with these old units. They’re not even mentioned on their site. If your heart is set on using these units, there is a trick to getting them to function. You must first unplug this old camera, and uninstall all labtec webcam drivers. Then, get an old copy of a Labtec webcam driver, and install that. Version 5.1 came with my camera originally, but I used version a 6 driver for this test. These are still floating around on the web. Hunt for them. Once installed, plug-in camera. You should get an image. Next, install the latest Labtec Webcam Drivers from their website (10.X+ at this time). DO NOT UNPLUG THE CAMERA. The new software will overwrite the old version, but keep the working driver. If you still have problems, update your DirectX version before installing your latest Labtec software.
Or, just go spend 40 bucks and get a new one. So much nicer. And this time, stay away from Labtec (if you actually find one) or Logitech (same stuff, actually) and goofy drivers won’t be a problem again.