So today I spent about 4 hours trying to get my MacBook Pro's iSight camera to work with sites that use webcams via Flash, sites like yFrog.com and Justin.tv. After updating Flash to the latest version 10.6.5, everything iSight related stopped responding, no matter what browser I tried, Firefox, Safari or Chrome, all had the same problem. I tried uninstalling and installing other versions of Flash without luck.
So then I came across this article in MacWorld, http://www.macworld.com/article/156357/2010/12/isight_flash.html, it seems that this is a pretty big problem that has been affecting many Mac users! The first thing the article said was to run GoogleVoiceAndVideoUninstaller.app in /Library/Application Support/Google, the second I did this it fixed my problem! So there seems to be a conflict between Google Video and Flash, something that screws up the iSight driver. Hope this article solves your issue if you are having trouble.