So close, but no cigar! :)
This error seems a bit more of a pain in the arse compared to the
other problems. 

From the looks of it, seems to be a problem with the way its getting
the packets back from the webcam (obviously). Not sure how to solve
this at the moment.

Could you get us a text dump from usbsnoop or whatever you used in
the first one from a cold boot? The one you attached here (not XML)
was in binary, and I can't read that. Sorry.