I suffered an inexplicable loss of (built-in) iSight funtionality after installing Boot Camp, Parallels, and applying a system update. I don't know exactly what caused the problem, but I tried all the possible fixes I could find (zap PRAM, reset PMU/SMU, reinstall Tiger/Leopard, etc.), but none worked for me.
When I first received my iMac (17", 1,8Ghz, 2Gb RAM), the iSight would show up as iSight in System Profiler. Then, when I noticed it wasn´t working anymore, it was listed as a Vendor Specific product.
I found a post where someone reflashed their iSight firmware in Linux with the Apple-supplied firmware (in the Core Services folder), and this fixed his problem for good. Unfortunately, I wasn´t able to contact him or replicate his procedure. I was getting pretty desperate at this point (it had been about three weeks since I discovered the problem) until I found this...