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You may try to find out where the fault is, one thing to know is use another the same driver and install it on your PC. If it installed then your previous driver is faulty, if it poses the same problem you have the problem on your PC. Try first using another same driver.
Go to TOOLS, then OPTIONS, and click on AudioSettings and set the Microphone and Speakers to the computer Audio Card. Then click on the Video Settings. The camera if installed properly will come up and show a picture. Then on the bottom of the page click on Save.
Hello all, we supply Macally Icecams through our company and have done so for many years. The camera works absolutely fine with Skype. Unfortunately Skype do not make it easy for people to understand how, so we wrote a user friendly blog about it and it can be viewed here: http://blogs.ebay.com/skinnywolf_online/entry/Webcams-for-Mac-Users-The-best-VoIP-Interfaces-t/_W0QQidZ189277018
Simply copy and paste the above link into your browser to find the easy set up procedure.