FaceTime camera doesn't appear

After Installing Lion my FaceTime Camera doesn't work.  The message that I get is that it is not installed.  Also, my system seams to running slower.
iMac Specs
Model Name:          iMac
  Model Identifier:          iMac12,2
  Processor Name:          Intel Core i7
  Processor Speed:          3.4 GHz
  Number of Processors:          1
  Total Number of Cores:          4
  L2 Cache (per Core):          256 KB
  L3 Cache: 16 MB
  Memory: 16 GB
2 External 27" Apple LED Displays
Running VMware as well with Windows 7 Professional 64 bit

Same Issue in MB Air. I have Lync 14.0.7, but no video at all.

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