The camera can be used to take pictures or used for a program like Skype. However, to take pictures, you should have an application that is developed for this operation. Typically, you should have the application available in My Computer/Computer. If it's not there, install YouCam and it should work properly.
Additionally, the camera driver needs to be installed properly. You can download the driver from the Asus Support page: http://support.asus.com/ServiceHome.aspx?SLanguage=en