Ok guys here's my solution until I've got an alternative..
Download a nice little program called CamTwist from here:
http://www.2shared.com/file/InORDOoh/Acer_WebCam_solution.html
Install CamTwist, then open it up.
In the first column, 'Step 1', select Webcam. Then click 'Select' at the bottom of the list.
Ignore step 2.
Step 3, click 'Save Setup'. Type any name, I just typed 'ASUS Cam'.
Now open the program you want to use your webcam on. Photo Booth, Skype, whatever. Select the webcam/input source in the preferences of the program as 'Cam Twist'. Then in Cam Twist click your saved setup in the 'Saved Setups' list (mine is ASUS Cam), and click the 'Select' button at the bottom. - You can also select 'Auto load' to have it load that setup every time.
You should now see yourself on the program you selected.
The only downsides:
1. You have to keep CamTwist running in order for your webcam to work.
2. The cam is always on - if you have a light to say when your cam is in use, it'll be on as CamTwist is running.
Number 2 of course can be a flaw, because people can watch you through your webcam, and the only way you know if someone's doing that (for the average user) is if the light's on. So make sure you switch Cam Twist off when you're not using your webcam.
Note: CamTwist was not made by myself, nor was it made specifically for this webcam. I do not garantee it will work, nor do I take responsibility if anything goes wrong.
I'll be back soon with a better, alternative method.