Hi,
In some cases in early MacBooks and MacBook Pros the routing of the USB cable from the motherboard through the hinge and up the back of the Screen to the camera could cause the cable to "pull" on the camera and come detached with regular use of the hinge.
In other cases if you had a desk that you could walk around, picking up the laptop by the lid tended to cause a "pinch" near the camera point in the top center of the bevel (Screen Surround).
As the first is regular use Apple Care may have covered it at the time if it has been a very long time out of action.
The second is Misuse and may have cost you.
Right now if the SMC/PMU reset has not worked then it is time to visit the Apple Store or an Apple Authorised Service Provider and have it checked out.
It seems in AppleCare cases Apple replace the whole Screen. (It is probably cost effective for them to do this and they can recover usable parts later and not lose time in straight labour costs).
There are also sites like iFIXIt that have instructions for do-it-yourself Example page
(this may not be your Model but will give you an idea of what is involved labour and parts wise.)
The alternative is to buy a USB 2.0 UVC Compliant camera.
Ever since Vista for Windows was released Cameras have tended to be USB 2.0 and also UVC compliant
UVC stands for USB Video Class and needs no driver in Windows and Mac OS X since OS 10.4.9
This is likely to cost less than any repair.
8:55 PM Saturday; February 23, 2013
Please, if posting Logs, do not post any Log info after the line "Binary Images for iChat"
iMac 2.5Ghz 5i 2011 (Mountain Lion 10.8.2)
G4/1GhzDual MDD (Leopard 10.5.8)
MacBookPro 2Gb (Snow Leopard 10.6.8)
Mac OS X (10.6.8),
Couple of iPhones and an iPad
"Limit the Logs to the Bits above Binary Images." No, Seriously
