I have this cam. It took me a long time, 6 months to get the right driver up and working. Here is what I recommend:
grab the .bz2 file - located on the left bar
extract and change directory
in terminal type "make" no quotes, takes a few mins
then type "sudo make install"
tested working on Intrepid With Cheese, Ekiga, Skype, GyachE, Xawtv
COLORS are fine! no more green/blue Hardy mess.
not working in Camorama, Camstream, errors in gqcam
UPDATE! if you have errors on the MAKE step, you can use "make distclean" "make clean" then "make menuconfig" and deselect the other un-needed drivers for audio/turners etc, I had errors on my upgrade to karmic alpha 4 & 5 and this solved them. After the last step run a normal "make" and "sudo make install". Working like a champ