Q: iMac iSight resolution turned grainy

One of my friends recently downloaded Skype and after she used it, I went to PhotoBooth and the camera resolution was really bad. Really bad. I was wondering if the Skype app had anything to do with it considering the iSight doesn't have a video setting?

This is really upsetting because I am really anal when it comes to people messing with my stuff. Please help.

Here is a before & After pic. You can kind of tell on the white walls in the background.

Before:

After: