Mike,
 
Haven't seen this issue come up yet.  I'm sure you've checked with the Adobe Forums, but I'll double check with another resource later today.  
 
Quick questions, however:  1. what kind of webcam are you using? 2. what's the graphics card on your computer?  Although I doubt very seriously that there's an issue with the card, it helps to get a better picture of what you have running,  just in case.
 
Rob

Hey Mike,
 
sorry for the delay.  I recently posed the same question to Jorma Jennings of RealEyes Media.  His response below:
 
We use Dell computers and many of them have the built in web cam. We have not ever run into a problem with the cameras, or the video card.
 
It actually sounds like they may need to get the update to Presenter 7.  
http://www.adobe.com/support/downloads/detail.jsp?ftpID=4005
This patch resolves some major issues with the recording audio (it crashes too) an may resolve their video issue.  
 
If this isn’t the resolution, let me know and I’ll keep digging.  
 
As a point of reference we use Dell Vostro 1500’s and Dell Latitude’s. The Vostro’s have a 2 MP web cam built into them and we use Logitech cams on the Latitudes and the non-laptops around the office. We also sometimes use a Cannon XL-1, but I’m guessing that a $3,000 camera isn’t the answer.
 
Bottom line Mike, see if the update resolves the problem and please let me know how it turns out.
 
 
Rob

No problem Mike!  I think I saw this same post, or something very similar to it, out on Adobe's Presenter Forum, so I'm glad that you found the solution.
 
Best,
 
Rob