Colours desaturated and image washed out when using the built-in webcam on Lenovo X1

When using the built-in webcam on a Lenovo X1, all colours are desaturated and the picture is generally of poor quality. See the attached sceenshot waken with Cheese for an example. Note that the issue also occurs with Skype.

ProblemType: Bug
DistroRelease: Ubuntu 11.10
Package: cheese 3.0.2-0ubuntu2
ProcVersionSignature: Ubuntu 3.0.0-11.18-generic 3.0.4
Uname: Linux 3.0.0-11-generic x86_64
ApportVersion: 1.23-0ubuntu1
Architecture: amd64
Date: Sat Sep 24 15:25:23 2011
InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Beta amd64 (20110901)
MachineType: LENOVO 12942NG
ProcEnviron:
 LANGUAGE=en_GB:en
 PATH=(custom, no user)
 LANG=en_GB.UTF-8
 SHELL=/bin/bash
RelatedPackageVersions:
 cheese 3.0.2-0ubuntu2
 cheese-common 3.0.2-0ubuntu2
SourcePackage: cheese
UpgradeStatus: Upgraded to oneiric on 2011-09-14 (9 days ago)
dmi.bios.date: 06/20/2011
dmi.bios.vendor: LENOVO
dmi.bios.version: 8MET22WW (1.22 )
dmi.board.asset.tag: Not Available
dmi.board.name: 12942NG
dmi.board.vendor: LENOVO
dmi.board.version: Not Available
dmi.chassis.type: 10
dmi.chassis.vendor: LENOVO
dmi.chassis.version: Not Available
dmi.modalias: dmi:bvnLENOVO:bvr8MET22WW(1.22):bd06/20/2011:svnLENOVO:pn12942NG:pvrThinkPadX1:rvnLENOVO:rn12942NG:rvrNotAvailable:cvnLENOVO:ct10:cvrNotAvailable:
dmi.product.name: 12942NG
dmi.product.version: ThinkPad X1
dmi.sys.vendor: LENOVO