Now that the "dark band" bug has been fixed on the webcam, and the "mirror" app looks better.....what's the story with all the noise?

Sure, it's a basic 640x480 webcam, but WTF is with all the pixellated garbage? Even cheap webcams from Staples look infinitely better than that!

Given the nice camera on the front, I'm presuming it's some sort of driver issue - surely the hardware can't be that crappy? Surely?

Does anyone have the benefit of concrete info on this issue? Can it be fixed? Will it?