Someone suggested going into Skype - tools - options - video setting.
I did and the light came on for the camera and I can see myself in a window and it says "set up your webcam."
When I close options down the light goes off.
-----------------------------------------
If you can see that, it means the camera is installed and working. It's only that Skype isn't using it for some reason.
When you see the camera picture in 'video settings', try pressing the 'Save' button. When you close Skype after doing this, the webcam light will go out because it isn't then being actively used.
I expect you know there are two ways of using Skype? One way is voice only and the other is voice and camera. When starting a conversation using the camera, you'd need to click the camera icon to start begin it. Similarly when answering a call.
The camera can be started at any time. If you don't see the person you are talking to, try pressing the camera icon. Also, is it the case that people can see you, or is it that you can't see them?