This works! Thank you Robert!
Stiletto,
https://go.skype.com/classic.skype
Go to this page and install the "Classic" version of Skype. Then log out of the Skype that's built in with windows and login in to this one.
Personally, I am experiencing the same blank camera issue when attempting to integrate this plugin with with a flash based browser applet. It appears this issue came up and was fixed in a prior release, but seems broken again. Possibly a new permissions issue? The virtual camera is available in the drop down list, but gives no output once selected.