In my case it solved all my problems (cheese, gst-launch-0.10) except one. Since I'm running a 64 bits system, I keep having a problem with Skype, even after updating the i386 libraries (sudo apt-get install libv4l-0:i386). However, with the help of v4l2ucp you can change the saturation pattern and get a much more reasonable output.
As I filed on bug Bug #880271 I think the problem lies in the v4l library, which you can update as follows:
sudo add-apt-repository ppa:libv4l
sudo apt-get update
sudo apt-get install libv4l-0 libv4l-dev
In my case it solved all my problems (cheese, gst-launch-0.10) except one. Since I'm running a 64 bits system, I keep having a problem with Skype, even after updating the i386 libraries (sudo apt-get install libv4l-0:i386). However, with the help of v4l2ucp you can change the saturation pattern and get a much more reasonable output.
I hope this can help you guys.