It is the most recent driver set, Like the others have said, I don't get the option of No Audio. The drop down box only shows the Logitech Web Cam as the Audio source. I have tried rebooting the PC, No luck. It is not plugged into a hub but directly into the on board USB port. I will try unplugging it, and then rebooting, and then plug it in again.
The odd thing is I have 2 of these cameras (I did swap to check) and had no problems at all getting the other one to work. The only difference is this is on a XP machine vs. Windows Vista on the other.