I know someone who had this problem (not with this specific webcam) and here is what we did to fix the issue. The person I know had YouCam installed which uses its own splitter called the Cyberlink Webcam Splitter. This would crash the webcam settings page making it unuseable. We found this to be because the software (Youcam 3.5) in this case had not been installed (on Windows 7 x64) as Administrator. We therefore uninstalled YouCam and reinstalled it using the setup file but this time as Administrator. This allowed me to access the video settings page and choose the webcam (not the splitter) without it crashing the page.
This however did not stop the video from bombing in the middle of a video call. It was then that I discovered something that many might not have noticed that makes the video unstable. In the webcam settings there is the option to choose the powerline frequency. By default it is set to 60 Hz. One assumes this is because Skype believe that everyone lives in the USA 
. We however live in the UK where the frequency should be set to 50Hz. After setting this to the correct value the video has stabalised and does not crash. If you do not know the correct frequency for your country you can find it on wikipedia.by searching for "Mains electricity by country".
So to sum up.....anything that installs a splitter install as Administrator and set the your correct frequency for the mains in your specific country.
Hope this helps someone. I know how frustrating this was for us.
Chris
