Are you using an embedded camera? It sounds like Jabber isn't recognizing the camera properly. Can you check for driver updates (camera/video/display)?
Does a USB camera work?
I recall that embedded cameras on some laptops might have applications running that hold control of the camera, blocking Jabber from using. We found that installing a camera sharing application drivers like http://www.driverscape.com/download/arcsoft-webcam-sharing-manager allows multiple applications to access the camera simultaneously.
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