Also ran into this today on a Dell Inspiron 1525. This was a fresh Ubuntu 10.04 install.
USB device id of the cam is 05a9:2640 (OmniVision OV2640 (Dell Inspiron 1420/1720 notebooks)), which according to upstream UVC (USB Video Class) driver documentation on http://www.ideasonboard.org/uvc/#devices ought to be supported.
I see the same initialization error as linusr:
[ 7.028381] input: Dell WMI hotkeys as /devices/virtual/input/input5
[ 7.034307] uvcvideo: Found UVC 1.00 device Laptop Integrated Webcam (05a9:2640)
[ 7.035699] uvcvideo: UVC non compliance - GET_DEF(PROBE) not supported. Enabling workaround.
[ 7.035813] uvcvideo: Failed to query (129) UVC probe control : -32 (exp. 26).
[ 7.035877] uvcvideo: Failed to initialize the device (-5).
[ 7.036126] usbcore: registered new interface driver uvcvideo
[ 7.036134] USB Video Class driver (v0.1.0)
[ 7.104657] lp: driver loaded but no devices found
I can provide more info or do some tests on request.