I have the same webcam and had the same problem.
But it is solved.
Download new driver from 
http://mxhaard.free.fr/spca50x/Download/gspcav1-20070508.tar.gz, unpack it a 
run:
sudo ./gspca_build
and the new version of the module will be compiled and installed.
If the picture from the webcam will be still poor and upside down, try to 
connect it to another USB port (it was my case).

-- 
Webcam image for my ZC0302 is upside down and of poor quality. This is a 
regression from Edgy 
https://bugs.launchpad.net/bugs/109754
You received this bug notification because you are a member of Ubuntu
Bugs, which is the bug contact for Ubuntu.

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