the only problem i ever had was that msn beta didn't want to recognize that i have a webcam
but here is some stuff that might help u hopefully...
try to see if there are any driver updates for your webcam. go to the official site and check there..
if you have windows XP -> you have service pack 2 right? ..also get the newest directx
http://www.microsoft.com/downloads/details.aspx?F...197&displaylang=en
something stupid but meh - try to install the webcam again after you already instal msn 7 onto u'r computer.
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gif 
