Had the same problem with a Vostro V13, spent 2.5 hrs on chat with a dell tech and his supervisor, no luck. I don't think it is a hardware malfunction. I also just got my 11Z yesterday, same config you have, installed Windows 7 Ult 64 bit, took the webcam central disk installed it no problem. Webcam worked, was missing driver for unknown hardware, put vista driver disk in downloaded a few drivers corrected that problem, Guess what webcam didn't work, webcam central says unsupported driver. Went back uninstalled audio device, rebooted let it find it's own driver and presto webcam is working again. Seems to be a conflict going on with some drivers. On the V13 the only time the webcam turned on was when I set up the audio&video in Instant Messenger. Haven't got around to fixing the V13 yet, but Windows 7 installed the same driver for the webcams in both laptops. The 11Z reacted the same way in IM when the webcam was down as the V13. All those driver detectives and driver magicians are a bunch of BS, just trying to get your money for nothing.