I have a Genius iLook300 webcam running on Windows 7. Skype informs me that I cannot use the webcam because it is being used by another program. Indeed, there is green light that turns on while the camera is in use and it is always on. I went through task manager trying to find the culprit program but there is nothing there that should be using the camera.

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Are you renting from Aaron's? :) – BBlake Aug 30 '11 at 14:59
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You could try using Process Explorer to monitor the camera driver dll and find out which process is using it. – TiCL Aug 30 '11 at 15:55
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