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If you have only one webcam plugged in and start two instances of the iCamSource doe they both have the "No Audio" option available? (This is before "Starting" either of the instances.)
I am still unable to reproduce the "No Audio" not showing up in the second iCamSource. If you click on both iCamSource icons in the menu bar (near the clock) and choose "About iCamSource" do they both state that they are the latest version, iCamSource 1.4?The reason I ask is that the "No Audio" option is always added to the drop-down list in the code ... There isn't any logic that doesn't specifically add it ...By any chance do you have any other webcams to test with, just to try some other configurations out?