If it worked and now it doesn't that sounds (and looks) like we must have broken something.
Could you please open a new bug report on this over at bugbase.adobe.com? Please post back with the URL so that others affected can add their comments and votes.
Thank you for adding the bug. If you haven't already, please give our AIR 3.6 beta build a try. I know we've fixed some camera issues so it's possible this might have been addressed.
Hey! It seems to be working again! Thing is, I guess I'll have to wait for 3.6 to be released in the Android Market for most users to have access to it... Any idea when that might be?