I have asus eee pc 1000HE netbook and its camera is perfect under windows 7 rc 32 bit, but on my main laptop which is asus n50vn-b1b which has windows 7 rc 64 bit webcam is upside down, I did have 32 bit windows 7 rc but camera was still upside down.
After reading several forums including asus, I realized now that in some machines camera is installed upside down and in some it is right orientated and reason is beyond me, may be space and design considerations. In machine where webcam is upside down oriented, camera drive flips the image.
Now to fix it we have to know what is pid of the camera and download the correct driver, so go to this address and follow what is suggested.
ASUSTeK Computer Inc.-Support-
After driver download unzip or unrar it and run setup and than restart the computer, and it will be correctly oriented.
Mine was chicony==> 04F2.
Asus had 64 bit driver for it.