Microsoft HD (High Def) Lifecam: Camera Not detected or visible to MS Software, Studio 1555 laptop

I have a new Dell Studio 1555 laptop: Vista 64Bit, 4Gbyte, 2.4GHz, 500GB HD.

I tried to install the new Microsoft HD Viewcam. The software installation went fine, Drivers installation was checked and they were loaded and emabled. No hardware issues were shown. When I run the latest MS Webcam 3.0 software the program starts but comes up with the message a camera is not connected.

To torubleshoot I:

1. Tried different USB ports.
2. Uninstalled and installed the MS 3.0 Software
3. Made sure I did not connect the camera before instructed in the software install process.
4. Downloaded latest 3.0 version software.
5. Resarted laptop etc.

Nothing I did solved the problem. I took the MS camera back to the store anf it worked on their PC (using Creative SW just as a quick check to see if the HD camera was not DOA).

Any ideas on this? The HD lifecam has had some pretty nice reviews and should work on Vista. I have seen plenty of online videos using this new product.

Thanks..Dave