Happy New Year,
In Skype is your Cam showing in the "input device"?.
2). Have you run "alsaconf" in the Terminal in PCC>System?
3). Have you opened "Volume Control" by right clicking your speaker and checking if the cam is showing in "recording" and the volume is up?
If you check the above, I'm sure you will get it going. 
Answers:
1.) In Skype's video devices option, it says "Previous webcam not detected (/dev/video0)
2.) I did, but it only detected my soundcard, not the webcam
3.) When i right-click on the speaker, and go "Select Master Channel", i can pull down "USB Camera" as Current Mixer. However, there are no options you can set.
Thank you for your suggestions, tom43. However, i'm still out of luck. Too bad i have no access to another webcam to experiment with