Please help w/ Video on Wind. Messenger

Please Help!

I am having a problem with windows messenger and
connecting to people using my webcam. I checked my
connection under the tools then options menu and it says
that my computer is connected to the .NET messenger
service with a direct connection(no firewall). In
addition, I can send IMs with no trouble it's just that I
can't use the webcam. The person I'm connecting with is
running the latest version(as am I), have the windows
updates, and neither of us are behind a firewall.

Thanks