I've compared my camera picture to even the older iSight camera picture and mine (although just recently purchased in February) is definitely NOT in HD. How can I adjust the settings?
The Apple articles above apply whether your camera is called an "iSight" or one of the newer built-in cams that Apple has named "FaceTime" or "FaceTime HD" cameras.
The ONLY case I know where Apple software lets you control the quality is in QuickTime Player movie recordings. Here is how you can adjust quality for QuickTimeX:
However, even if you have set the quality below Maximum here, other apps like FaceTime, Photo Booth, etc., should still automatically set best quality for the lighting conditions while you are using your camera for video.
(3) If you must take manual control of some of the parameters that are normally set automatically by the software you use to operate your iSight, the best I know is iGlasses:http://www.ecamm.com/mac/iglasses/