Blurry iSight only when other party connects

I have read the numerous other issues with blurry video, however, I haven't seen one with my problem. My preview looks crystal clear until I invite another party for a video conf. Once they accept, my viedo gets slightly blurry.
My bandwidth is 4.5MB down and 500 kb up, which should be sufficient. I have made the changes to preferences/quicktime.
Any suggestions?
Thanks,
Ben

 Are you running ANY other apps while trying to video chat? If so, shut down everything, reboot your modem (and router if you use one,) restart your Mac, close any apps that you have set to launch as System Preferences > Accounts > Login Items, launch iChat AV only, and try video again. If you experience the same problem, you can try the following to track down the cause of your problem and resolve it.
ALL parties to the problem chat should Check Broadband Speed. (Buddy Names for iChat Test if you need testers.)
If speed is adequate for all parties, ALL parties to the problem chat should test with more than one other user to determine which system is causing the problem. Then the user of the problem system should troubleshoot and consider any untried Help for iChat AV 3 Problems suggestions that are relevant to the problem system.
Please let us know what fixed it for you.
Cheers,
Jim

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