i got the sam problem and got it solved.
1.download and install adobe flash player latest from adobe website.
2.install directx enduser runtime components
3.(most imporent)standard vga graphics adapter and other smilar windows graphic drivers should not be there in graphic adater option in device manager.install the appropriate graphics driver especially if on windows 8.
4.http://www.skype.com/go/getskype-full (download and install)
5.if problem persists install windows 7 ultimate sp1 and install all drivers.
Just update your Display driver its should work.microsoft basic display adapter its not the correct driver so just check with laptop official website you will get the display driver
After hours of trying to fix that problem(had the same), it turned out the solution is quite simple.
1. Uninstall "Microsoft LifeCam"(NOT THE DRIVER)
2. Restart your computer
3. Have fun with your webcam!
Hope it works for you as well
@abhilashnikhare, please try to install latest webcam and graphic card drivers for your OS. It seems like you have default Windows 8.x drivers installed and you should go to the manufacturers website and install proper drivers both for webcam nad graphic card.
Please try that and see if it helps.