Thanks for the advice, I'm really loving my Mac so far. I've been a long time Windows and Linux user (I even do Windows programming for a living) and I am really impressed so far.
I am not sure what happened, but when I got home from work everything works again. I did uninstall the Parallels demo, maybe I needed a reboot afterwards? This is my first Mac so I'm not sure.
Thanks for the reply.
I bought a Macbook 2 days ago and the camera worked when I went through the initial set up. Now when I load photo booth the options are grayed out. When I look at the video options in ichat it says there are no cameras attached.
What could be the problem here?