Might be going over something you have tried.
Have you just tried the iSight camera without any other devices plugged into the firewire ports?
I had similar problems with my iMac G5 iSight & Firewire drives. The problem is the iSight draws heaps of power which can affect the firewire ports functionality. Causing the iSight and/or firewire drives to do strange things.
Have you tried reseting the PRAM and firewire ports.
http://docs.info.apple.com/article.html?artnum=2238
http://docs.info.apple.com/article.html?artnum=88338