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Windows Live Messenger 9 Webcam not showing Issues

Hello dear users and helpers.

I have a problem with my Windows Live Messenger 2009 on my Windows 7 64-bit, where when i try to show my webcam to others, i get 2 options, "Show Webcam", and "Videochat". However, the problem is that "Show Webcam" is grayed out...
And when i go into my options in Windows Live Messenger, they tell me i don't have a webcam, and to "click here to buy" one. The only thing is, i am using a laptop with an integrated webcam which does work, just not with Windows Live Messenger.

However, this is painfully irritating me, and i want it fixed.

I hope that by providing you with this information, you will be able to help me out here, so here is the information.

Acer Aspire 5739G

Operating System:
Windows 7 64-bit

CPU Type:
Intel? Core?2 Duo CPU T6600 @ 2.20GHz

CPU Speed (GHz):

System Memory (GB):

Video Card Model:
NVIDIA GeForce GT 240M

Video Card Driver:

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