I seem to be the odd man out, my Logitech QuickCam Pro 9000 still shows the white-out. I have noticed two really odd things however:
1) While ICam Source shows the white image, PhotoBooth shows the live feed from the camera.
2) When the QuickCam is plugged into a USB port on my MacPro it works fine (both in PhotoBooth and iCam); when plugged into a powered USB hub iCam shows a white-out while PhotoBooth shows the live feed.
While the direct USB work-around is fine for the time being (just really awkward), I would like to know why it happens and if it is fixable.