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I have tried all softwares from Cheese to Video4Linux but don't seem to able to find the solution. I have went through few of the earlier Qs' yet still didn't do the job.
As is, I am forced to reboot into Windows every time I want to use video call on Skype. Is there an option or a fix somewhere that could eliminate this annoyance for me?

LD_PRELOAD=/usr/lib/i386-linux-gnu/libv4l/v4l1compat.so /usr/bin/skype? If it works, I'll post the steps to make it permanent. There will be a different path if you have a 64bit system, runlocate v4l1compat.soto find it. – mikewhatever Sep 8 '12 at 16:32