Cam no longer works in chat room, what changed?

I came in yesterday and saw my cam was not working any more. I chalked it up to a bug as it had been previously working perfectly fine for over a year. i tried again today and still nothing. It comes up like it is going to work, but on my end just shows a still picture of me, but others say they do not see a picture.

Was something done as an upgrade to the chat program?

Am I the only one with this issue?

I am using a Microsoft life Cam. It has not been upgraded any time recently so likely not on my end?