iMovie '08 not recognizing iSight

Ever since I updated my system to the (at the time) most recent update to version 10.8.3, my iSight has not been able to work in iMovie. I have iMovie '08 (7.1.4) and every time I go to record something I get the message: "No camera Connected ---- To import video, please connect camera" It was working perfectly fine before I updated my system. Things like photobooth work perfectly fine and it can detect the camera, but not iMovie. (iSight is built into my '08 Macbook Pro)

I have been reading around and have tried going into "LaunchDaemons" and seaching for "com.apple.mio.VDCAssistant.plist" so I can delete it and see if that works, but on my computer it only shows "com.apple.cmio.VDCAssistant.plist" So, I deleted that, restarted my computer, and that did not solve the problem.

I have also tried resetting PRAM, but that did not work.

It was suggested that I look under my "System Information" and see if my built-in iSight appears under "USB" and it does in fact show up. I don't know what the means though.

I cannot seem to find a solution that works. I would just like to be able to record again on iMovie without having to buy the new iLife or anything like that. I feel like there has to be a solution. Any help would be great, thanks.