Microsoft Lifecam VX-2000

Hi Madala
From what you've said, it seems that the hardware works ok and the drivers are up to date.
Have you made contact with Facebook and explained the problem with them?
From the net i picked this up:
"Facebook Video Calling is a communication plug-in that sets up a video chat in Facebook.
With this software, you will be able to talk to your Facebook friends and see them at the same time. Equipped with Skype technology, Facebook Video Calling allows you to have video conversations directly from your Facebook account."
You're presumably using your browser to use Facebook and the chat option which should show like the picture I've attached.
Have you tried another browser?
Give that a go and I'll look into it a bit further.
Cheers
Marc