Having webcam troubles with MSN Live chat?

[Yaya]

I'm trying to do a webcam chat with a friend and it isn't working. It worked before - just the other day - so in theory, there shouldn't be anything wrong. My webcam works perfectly find on my Asus laptop (built in cam). Yes, I checked the settings. He does not have a webcam - but this should not affect him being able to see me through my mine (like I said, it worked fine the other day).

When I try to video call him it says He has a version of Messenger that does not support that feature.
When he tries to video call me it tells him I do not have my webcam turned on and/or it's not working

And yes, he has the same version of Messenger as I do.

Very odd indeed. Any suggestions?

(I've looked around and have seen this is a VERY common problem with MSN Windows Live Chat. Needless to say, I'm not impressed with their support).
oh and I'm using Windows 7. Not sure of his operating system.

My webcam is an Asus USB 2.0 UVC VGA webcam. I checked and it says it is working properly (I tested it too with my computer webcam feature, it worked there fine too)