Does the timelapse screensaver work with isight? (i'm assuming it does...) When I test the screenaver, it says there are no pictures to show, and when I enable the screenaver, it says I have no camera turned on.
Hmm... I do seem to remember it saying there was no camera found and I forget how I fixed that. I was in the hospital and dopped up on pain meds at the time. have you fiddled with the Options in the screensaver prefpane?