Microphone works too, though you may need to choose the Input device in System Preferences Sound.
Microphone may suffer from "clicking sound" issue (see https://bugs.launchpad.net/ubuntu/ source/linux/ bug/151890 ) Worked perfectly out of the box for all but Skype.
Camera works in any application, for run it with Skype you have to launch it with: "env LD_PRELOAD=/usr/lib/i386-linux-gnu/libv4l/v4l1skype" Blue LED is always lit, the red led is lit when working.
Microphone works too (maybe you need restart) Skype 22.214.171.124: You should setup ov51x-jpeg (version here: 1.5.8) and "sudo modprobe ov51x-jpeg forceblock=1" or edit /etc/modprobe.d/options and add there "options ov51x-jpeg forceblock=1".
Webcam was then recognized and working, but still not usable in Skype.
Then typed "sudo gedit /etc/modprobe.d/options" in a terminal and added the line "options ov51x-jpeg forceblock=1".
Great price ( onsale.com) Works with Cheese at 1280x1024, 640x480, 352x288, 320x240, 176x144 and 160x120. Plays nicely together with external USB laptop camera for switching cams in both applications. If you don't have that library already installed, install it with "apt-get install libv4l-0" first.
The same trick also works for Camorama, and mplayer. Skype 126.96.36.199: Works fine after editing Skype launcher to run like this: "env LD_PRELOAD=/usr/lib/libv4l/v4l1skype" without the double quotes.
Works with Skype 188.8.131.52 if you install the package libv4l-0:i386 and change the launcher to: env LD_PRELOAD=/usr/lib/libv4l/v4l1skype.
Loading ov51x-jpeg without forceblock-option results in a black video stream for Skype, while it works fine using Cheese.
Skype version 184.108.40.206 works with modified for video size and frame rate (see Skype Garage), then install the package libv4l-0:i386 and change the launcher to: env LD_PRELOAD=/usr/lib/libv4l/v4l1skype Only green double preview. This camera is inbuilt in laptops Asus A8M Skype version 220.127.116.11.
Other Webcams with this chip should work in a similar way!