Comment 26 for bug 293176

OK, I have managed to make it work, but the input is *ugly* (greenish)!
Original guide: http://hansdegoede.livejournal.com/6630.html

1. Run this command in terminal:
v4l-info | grep 'device info\|version'

You will see:
ioctl VIDIOCGTUNER: Invalid argument
ioctl VIDIOCGFBUF: Invalid argument
### v4l2 device info [/dev/video0] ###
 version : 2.3.0
### video4linux device info [/dev/video0] ###

2. We will need to compile and upgrade the gspca to the newest available version (2.5.0 at the point of writing)
Now run these commands in terminal:

sudo apt-get install mercurial ncurses-dev
hg clone http://linuxtv.org/hg/~jfrancois/gspca/
cd gspca
sudo make menuconfig

Don't change anything, press Tab to choose "Exit" and press Enter.

3. Continue running these:
make
sudo make install

4. Disconnect all your webcam devices.
5. Now reboot:
sudo reboot

6. Login properly.
7. Connect your webcam.
8. Run:
sudo apt-get install cheese
cheese

You should now see your hulk-like green face. Or maybe your webcam works better than mine. :)

Notes:
- 64-bit Ubuntu users:
a) for 32-bit devices (e.g. skype) you need:
sudo apt-get install lib32v4l-0
LD_PRELOAD=/usr/lib32/libv4l/v4l1compat.so skype

b) for some applications you might need:
LD_PRELOAD=/usr/lib/libv4l/v4l1compat.so name-of-application
or
LD_PRELOAD=/usr/lib64/libv4l/v4l1compat.so name-of-application

(where name-of-application is your application)

- 32-bit Ubuntu users
 for some applications you might need:
LD_PRELOAD=/usr/lib/libv4l/v4l1compat.so name-of-application
or
LD_PRELOAD=/usr/lib32/libv4l/v4l1compat.so name-of-application
(where name-of-application is your application)