I have a compac CQ60 and the webcam has just stopped working on skype and also doesn't take pictures. what has happened?

Its a geniune problem with HP & Compaq Notebooks with Webcam
At first you need to check whether the Webcam is working through the application sent from Hp's end or not.
For example CYBERLINK YOUCAM or HP MEDIASMART is the name of the application which Hp sents.
If the Webcam still doesn't work through the application sent from Hp's End.
Then Click on START and in start search or run type DEVMGMT.MSC
It would take us to the device manager page.
Locate something which reads as Imaging Devices.
CLick on the + Sign next to it and then right click on the driver that come under IMAGING DEVICES and then click on UNINSTALL.
Now look at the top of the device manager window and locate ACTION TAB,click on ACTION and then CLICK ON SCAN FOR HARDWARE CHANGES.
Now check whether the Webcam starts working in SKYPE or MEDISMART or CYBERLINK YOUCAM.
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Now if you dont find imaging devices in device manager then uninstall CYBERLINK YOUCAM or HP MEDIASMART from programs and features and reinstall the same through RECOVERY MANAGER or from the manufacturers Website.
I am providing a link for reinstalling CYBERLINK YOUCAM
http://h10025.www1.hp.com/ewfrf/wc/genericSoftwareDownloadIndex?cc=us&dlc=en&lc=en&softwareitem=ob-68857-1&jumpid=reg_R1002_USEN

You can try uninstalling the web cam driver , and reinstalling it back ..
Click on start > in start search type in device manager {(for vista) for xp right click on My computer > click on properties > then select hardware > device manager }.
In device manager look for something like imaging devices.
Please click on the + sign beside it .
Then right click on the web cam driver > and uninstall it .
then go to the following url and download the web cam driver from there.
http:\\hp.com > software and drivers.

Install the web cam driver . Restart the notebook .