Hi,
Like this issues, particularly with hardware, this problem has a number of possible causes and solutions.
Firstly, refer the following article and check the result:
Troubleshoot bad or no video or problems starting LifeCam software.
http://support.microsoft.com/kb/933310/
Mostly, this issue is caused by corrupted USB driver.
Please try to uninstall USB driver and reinstall it:
1. Click Start, type devmgmt.msc and press Enter.
2. Expand Universal Serial Bus controllers.
3. Right-click every device under the Universal Serial Bus controllers node, and then click Uninstall to remove them one at a time.
4. Restart the computer, and then reinstall the USB controllers.
5. Plug in the removable USB storage device, and then test to make sure that the issue is resolved.
Meanwhile, you can disable the notification:
1. Click Start, type devmgmt.msc and press Enter.
2. Expand Universal Serial Bus controllers.
3. Right-click every device under the Universal Serial Bus controllers node, and then choose Properties.
4. Click Advanced tab, uncheck “Tell me if my device can perform faster”.
If issue persists, you can try plugging your USB device into another computer that doesn’t experience this error.
If you see the same error everywhere, the problem is due to your device, not your computer.
Hope it helps.
Regards,