I think your problem is USB. I have a QuickCam VC on my iMac (series A, OS 8.5.1), and had to add all the firmware and USB patches to make it work right (but its fine now). Also, plug it directly into the iMac, not via the keyboard, as it doesn't get enough power otherwise. I don't think you have a QT4 problem here. I would have expected the new iMacs to have all the patches, but your problems sound exactly like mine.