Odd colors in cheese in 11.10

VLC works fine with default capture device settings

Cheese displays odd colors when running.

Cheese works fine when running "ubuntu-bug cheese"

ProblemType: Bug
DistroRelease: Ubuntu 11.10
Package: cheese 3.2.0-0ubuntu2
ProcVersionSignature: Ubuntu 3.0.0-12.20-generic 3.0.4
Uname: Linux 3.0.0-12-generic x86_64
NonfreeKernelModules: nvidia wl
ApportVersion: 1.23-0ubuntu3
Architecture: amd64
Date: Wed Oct 19 16:47:34 2011
InstallationMedia: Ubuntu 11.04 "Natty Narwhal" - Release amd64 (20110427.1)
MachineType: Dell Inc. Studio XPS 1340
RelatedPackageVersions:
 cheese 3.2.0-0ubuntu2
 cheese-common 3.2.0-0ubuntu2
SourcePackage: linux
UpgradeStatus: Upgraded to oneiric on 2011-10-13 (6 days ago)
dmi.bios.date: 09/08/2009
dmi.bios.vendor: Dell Inc.
dmi.bios.version: A11
dmi.board.name: 0Y279R
dmi.board.vendor: Dell Inc.
dmi.board.version: A11
dmi.chassis.type: 8
dmi.chassis.vendor: Dell Inc.
dmi.chassis.version: A11
dmi.modalias: dmi:bvnDellInc.:bvrA11:bd09/08/2009:svnDellInc.:pnStudioXPS1340:pvrA11:rvnDellInc.:rn0Y279R:rvrA11:cvnDellInc.:ct8:cvrA11:
dmi.product.name: Studio XPS 1340
dmi.product.version: A11
dmi.sys.vendor: Dell Inc.