Problem Description
Webcam doesn't load in Logitech Webcam Software or Skype but does work in the modern/metro UI camera app.
Resolution
Find the registry key: "HKLM\SYSTEM\CurrentControlSet\Control\Class\{6bdd1fc6-810f-11d0-bec7-08002be2092f}" and locate the registry string UpperFilters.
In my case it was only populated with ASMTFilter. Add in 'ksthunk' as another value. Restart your computer and the webcam will now work properly.