I hope this sollution helps:
""Click on Start->Control Panel->Add or Remove Programs and uninstall the Veo Stingray software driver. Also, uninstall the Veo Digital Studio.
Unplug the Veo Stingray from the computer.
IMPORTANT! If you are connected to the Internet (such as through a dial-up modem or cable modem/DSL) log off from your Internet Service Provider and disconnect any telephone cords or Ethernet/Network cables from your computer. This will prevent Microsoft Windows Update from attempting to update your Veo Stingray software driver through Microsoft Windows Update.
Place your Veo Stingray CD ROM into your computer.
Click on Start->My Computer. Look for your Veo Stingray CD ROM drive.
Right-click on the Veo Stingray CD ROM icon and then select Open.
Go to the E:DRIVERSAPPBIN folder and double-click on a file named cleanup. (You can also download the cleanup file from: ftp://home.fiasj.net/xirlink/ibm/ibmcleanup.exe
In the cleanup program, press the "Scan and Delete" button in order for it to begin.
After the cleanup program has finished, click the "Exit" button and restart the computer.
Reinstall the Veo Stingray from the CD ROM, restart the computer, and plug in the camera after the computer has restarted.
After the Veo Stingray has finished installing, try the Veo Digital Studio program again and click the "Take a Snapshot" button.
If it works, you can reconnect your telephone cord or Ethernet/Network cable to your computer. Microsoft Windows Update will not attempt to update the Veo Stingray driver again."
It might also be a java problem, go to Add/Remove Programs, uninstall all versions of Java, and try reinstalling."