Why are the pictures loading in sideways, or with only the top half of the picture?
I have downloaded the application and installed it on my computer as well. Used a webcam to capture the images and everything worked normally. There were no issues or something related to your issues.
Download page: http://ticklypictures.com/projects/jellycam/
As an advice, try updating Adobe AIR to the latest version and then reinstall the application. Make sure that your webcam also works normally and is installed properly in Device Manager.
