OK, let's tackle one thing at a time.
Presenter is not installed:
What version of PPT 10 are you using, 32 bit or 64 bit? Are you sure that you downloaded the correct version of the installer? Whether you get the 64 bit or 32 bit version should be related to the version of PPT you have installed, not the version of your OS. Did the installer run and finish? Were there any error codes?
Presenter accessing your Camera:
When using the Adobe Presenter Video Creator (APVC) tool, do you get any error messages? If your camera is not compatible, is should let you know that when it tries to access it. If you get a general error upon using APVC make sure that your graphics card drivers are up to date. You will need the most recent driver.
If you are not trying to access your camera through APVC, how are you trying to access your camera in Presenter?
Thanks Jorma -
Office 2010 is 32bit. I downloaded the 64 bit installer as Win7 is running in 64bit, but that's a good point, I installed the 32bit version of APVC and now the AP add-in is available in PPT. Thanks!
Regarding the camera - For some reason, APVC is choosing a camera that is not installed, but I found where I select the fixed webcam is selected and this works now as well.
Thanks for the help!