Whenever I use the test porgram that the driver comes with, it seems to work fine. As soon as a web application requests the use of the video, it displays upside down.
I have the same problem in Skype. It works fine for actual video chatting but when I go to the feature to change my image and choose to ‘Take Snapshot’ from my webcam (the ps3eye) the resulting image is upside down. This happens on both vista and XP