I have finally managed to get a set up to work.

However i'm currently having problems with the mirror settings on my camera. I have used other applications such as skype and there is no mirror image it only seems to happen with google hangouts. Is there anything I can do in order to change this? I am not using a normal webcam where I can access it's settings and wondered if anyone knew of another way to flip the image.

Thank You

Having the same problem, were you able to find a way to fix this?

Thanks