"No Connected Camera"

Hi guys,

I've got a 2011 13-inch MacBook Air running OS X 10.8.2.

This all started yesterday when I was on Photo Booth. The camera just froze, and 'Heatsink B' shot up to 88ºC and had the fans going at 6500rpm. It remained like that for a good hour or so, even after a couple of restarts and cold boot-ups. Then, the whole thing calmed down and everything appeared to be working...except the camera and ambient light sensor.

So far, I've identified that it is a system-wide problem. The camera isn't working on a variety of programs (Skype, FaceTime, PhotoBooth), nor is it working on the a guest user account (FaceTime, PhotoBooth). Also, it isn't being recognised by System Information. It just...isn't there.

I've restarted multiple times, and also reset the SMC and the PRAM. It seems as though it could be a hardware problem, so really I have two questions about it:
1) If it is a hardware problem, how much do you think it'll cost to fix?
2) Do you have any tips to get the FaceTime camera working?

Thanks.

There's a strong possibility you'll need a replacement display assembly, not cheap but viable compared to the value of the MBP.