I was going to say that the answer is in your last post Daniel,
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THe message is this: Your invitation to start webcam could not be sent because .... is using a version of messenger that does not support this feature.
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BUT:
Is your friend using Windows 98?
Here is something I found:
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You might not be able to use the Webcam feature if you are running MSN Messenger on Microsoft operating systems other than Windows XP. With earlier operating systems there is no way to specify the video device you would like to use; if the system detects another video device before it detects your Web camera, the Webcam feature may not operate.
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