I hate it soo bad when I get new hardware and it doesn't work right. WebCams for some reason can be the worst! I am going to assume your computer is running Windows 7 Home premium as that is the standard with this model.
First, download the drivers from this site:http://www.bioticaindia.com/veo-stingray-330vb39c.html
DO NOT PLUG IN YOUR CAM ... in fact, if you have already tried this once, make sure you have completely removed/uninstalled the driver files from your system. Run a registry cleaner (ccleaner is awesome and free) and reboot your system.
WITHOUT plugging in your cam, right click on the driver file for the camera and select "Properties"
on the top of the window which opens, select the tab which says "COMPATIBILITY"
Check the box next to "Run this program in compatibility mode for:" and scroll the options to Windows Vista Service Pack 2
NEXT select the option at the bottom of the properties box which says"RUN THIS PROGRAM AS ADMINISTRATOR"
Close the properties box and double click the driver file to initialize the driver installation.
Plug the Web Cam in as prompted.
Try using Skype, Yahoo Messenger or (free) Easy Web Cam to test your camera. It should work. If the Vista settings fail to make the camera work in Windows 7, try the same steps but use compatibility mode for Windows XP Service Pack 3.
Hope this helps Fix Ya! If you were able to solve the problem with these instructions, share the love and rate up this support with positive feedback and a testimonial. Santa will be watching!