If you have trouble using Microsoft’s LifeCam Web Camera with Windows 7, here’s a simple tip that works for all NX and VX series.
Open device manager from your Windows 7 control panel and uninstall the drivers for LifeCam (it could be listed as USB Camera).
Restart the computer (if required by the uninstall module), do a search for Lifecam 3.0 exe (it’s available on the Microsoft hardware site for both 32 bit and 64 bit windows) and install the utility (you can skip Windows Live Essentials).
Once installed, open the Lifecam software from the Windows start menu and it should work just fine.
If you go through the Windows update route in Window 7, it might download version 2.9 of Lifecam software that can have compatibility issues so use Google to directly download the right version of Lifecam Drivers.