I've really never heard of this specific model but it probably uses some kind of software implementation program "in-between" such as special effects, soft zooming, subtitles etc (it's not directly hardware connected to MSN)
Try uninstalling ALL programs related to your webcam and reinstalling ONLY the webcam drivers if possible.... if this doesn't do the trick there are alternative (but slighty more complicated) solutions... so keep us updated if you still have problems