The issue may occur if the Camera Driver is corrupted, missing or not installed correctly in the Computer.
Please re-install the Camera Driver in the Computer to resolve the issue.You can view and download the Camera Driver from this link
Please download the SODCAM-01098002-US.EXE file to a temporary or download directory.
Go to the directory where the file was downloaded and double-click the SODCAM-01098002-US.EXE file to begin the installation.
At the "Sony Visual Communication Camera VGP-VCC1 Driver for Microsoft Windows XP" screen, click "Next".
At the "License Agreement" dialog, read the agreement, then, if you agree, click "I Agree" to continue with the installation.
At the "Finish" dialog, click "Finish".
Installing the Sony Visual Communication Camera VGP-VCC1 Driver should resolve the issue.If the issue is not resolved, please try re-installing the VAIO Camera Capture Utility in the Computer.You can view and download the VAIO Camera Capture Utility from this link
Please click on the "Download now" option on the page to download the file.
Then, please double click the downloaded file to begin the installation.
After installing the VAIO Camera Capture Utiltiy, please restart the Computer for the settings to take the effect.
Re-installing the Camera Driver and Camera Software in the Computer should resolve the issue.