Error in SKYPE v5.0 : Can't start video renderer. Check you've got a valid DirectX installation."

Recently SKYPE released version 5.0 software. The HP HD-3100 and HP HD-3110 Webcams with firmware revision 1.0 produce an error message when used with SKYPE version 5.0. The error message in SKYPE is:

The Webcams work correctly with SKYPE version 4.2. They will work with SKYPE version 5.1 due to release in January 2011.

The HD-3100 and HD-3110 Webcams (rev 1.1) work correctly with all versions of SKYPE. Please check the label on the cord near the USB connector. If the label shows "REV: 1.1", the webcam works with SKYPE version 5.0.

Revision 1.1 of the firmware is available from HP for those customers who want to upgrade. To get the firmware iupdate, please refer to the Software and Drivers section on HP support web page for your model of webcam.