Cheese displays strange colors in Ubuntu 11.10

Was working perfectly in 11.04

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 i686
NonfreeKernelModules: fglrx
ApportVersion: 1.23-0ubuntu4
Architecture: i386
Date: Sat Nov 12 23:46:29 2011
InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Release i386 (20111012)
MachineType: Dell Inc. Inspiron 530
ProcEnviron:
 PATH=(custom, user)
 LANG=en_US.UTF-8
 SHELL=/bin/bash
RelatedPackageVersions:
 cheese 3.2.0-0ubuntu2
 cheese-common 3.2.0-0ubuntu2
SourcePackage: linux
UpgradeStatus: No upgrade log present (probably fresh install)
dmi.bios.date: 06/20/2008
dmi.bios.vendor: Dell Inc.
dmi.bios.version: 1.0.15
dmi.board.name: 0RY007
dmi.board.vendor: Dell Inc.
dmi.board.version: ���
dmi.chassis.type: 3
dmi.chassis.vendor: Dell Inc.
dmi.chassis.version: OEM
dmi.modalias: dmi:bvnDellInc.:bvr1.0.15:bd06/20/2008:svnDellInc.:pnInspiron530:pvr:rvnDellInc.:rn0RY007:rvr:cvnDellInc.:ct3:cvrOEM:
dmi.product.name: Inspiron 530
dmi.sys.vendor: Dell Inc.