IMac G5 w/ internal camera

I am working on an iMac G5 20" w/ internal camera and when I try to run a video chat session in iChatAV I get a message saying the camera is in use by another Application. Rebotting doesn't solve the problem and Activity View doesn't show any processes running that would be using the camera so I'm a bit stumped. I even backed up my HD and did a clean install of OSX thinking it may be a software conflict of some sort but it didn't solve it either. Pulling the front bezel off the machine and unplugging and replugging the camera gets it going briefly but then eventually I end up getting the same message again that the camera is already in use.
Is anyone else experiencing an issue like this and if so, has anyone come up with a solution?

I'm actually an Apple Certified Desktop/Portable Technician so no worries on the warranty but using the Service Provider Support Channels was of absolutely no help. The Apple Support technicians haven't even acknowledged this as an issue and suggested I replace the camera board. I didn't buy this solution as it is happening on other machines on the network so I came here to see if there were an others experiencing the same issues. Turning off Classic and rebooting the machine worked. It's a bit of a pain to do this since one of our accounting apps still requires Classic but it's a workaround we'll have to accept.
cheers

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