Comment 6 for bug 326674

Leann's post makes it clear that there will not be a fix until after release of Jaunty. The Kernel is in code freeze pending release. However, the work around posted works fine for me. It's not hard. simply go here:

http://kernel.ubuntu.com/~kernel-ppa/mainline/v2.6.29.1/

Download the Kernel image for your architecture and install it with the package installer that will open it automatically. Then Restart.

For me, the New Kernel fixed the camera, but it made some other things a little funky. So I edited grub so that the 2.6.29.1 kernel was the second boot option. When I want to use the Camera, I reboot and select that kernel. That should hold you over until the fix is in.