Sorry EZ Jim,
Still as I discribed the problem.
This time no video on Photo Booth, but the approx 10 seconds on SKYPE, then frozen picture.
Did what you suggest and went through all steps in "How to...", but no luck.
Live in an MAC free province - no dealer except stores without technical support around.
Think of surviving without camera.
Thanks for your input.
As I understand from your most recent post, your camera works briefly in Skype but not at all with any Apple app in EVERY user account you test. The only reason I can think of that would cause this behavior is some kind of software conflict, most likely one caused by a non-Apple app, "extension", or plugin. Uninstall all third party software using the uninstall procedure specified by the software developers. Then troubleshoot test again.
Applying the latest Combo update for your Mac OS can sometimes correct software problems. For your Mac OS X (10.6.8), use Mac OS X 10.6.8 Update Combo v1.1. I suggest that you restart your Mac and then repair permissions before downloading and applying the Combo. Repair permissions again immediately following the restart that completes the Combo update.
If your problem continues, I there may be either some hidden or forgotten third-party software or components causing your trouble. Some software uninstallers do not remove all of the files that were installed or created by running the app. If you believe that software may be causing your trouble, backup all important files, zero (secure erase) your disk, reinstall Mac OS, the Combo Update, and Apple applications. Then test your camera again to be sure it works with Apple apps like Photo Booth, iMovie, etc.
Once your camera is working, copy only known good and necessary data files back. This will ensure that any hidden or forgotten files that may be causing your trouble are gone forever. If you must add third-party software back, install one at a time, testing thoroughly between each installation.
If your software work doesn't fix it, contact Apple or your Apple Authorized Service Provider for a hardware check.