When I Access My Webcam It Crashes Skype - Its Ok Using A Net Tester

Just loaded skype on a new PC - I am an experienced user No issues with install but when I try to set up the webcam or use it it causes skype to crash As soon as I access tools video settings it dies. Audio is OK and I can call using just audio I tested my webcam in win 7 control panel and it is OK I also tested using and online web cam test program and it also works OK Anyone got any ideas? PC is an ASUS 1.7ghtz process with 2mb ram and win 7

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