After 4 hours of hard goggling, poking, mumbling,coffee drinking and more googleing I figured out what the problem was with the PS3 Eye camera. It was nothing wrong with the driver or with it being Windows 7. The issue was my laptop battery!My issue was that as I started the PS3 Eye it ran for about 10-15 sec and then just went black as it was disconnected. Well I first suspected that it was cause I use Windows 7 and the driver suffer from Windows-envy. Dual booted my machine and exact same problem again. Looked around at Alex P's blog and found him using a tool called DPC Latency Checker. Ran it and it game me this pretty picture.
Something very wrong is going on here every 15 sec. It spikes and just as it does the camera fails. So I call in my research team (aka www.google.com) and found a forum where a guy/girl said that he/she removed the battery to get rid of the spikes that was caused of the power management system [can't remember where I found it :( so I can't give the credit]. Well. thought it was a long shot but I pulled the battery and tadaaaaaa. Problem solved. Spikes were gone and after testing all camera apps and they worked I found inner joy and floated away to nirvana, well had a coffee.
I will see if I can find a solution that don't involve pulling the battery but at least there is a workaround for now.
That's it for me tonight. Way past my bedtime.
Enjoy life!
So I got my PS3 Eye yesterday. Happy as a spring chicken (I assume they are happy) I jammed it into my laptop and expected the miracles to begin. Well first off I installed a old version of 
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