Also make sure that the Driver Station update you applied actually did update the dashboard portion of the software as well, as this is the component that actually displays the camera data; several teams, ours included, are having issues with the Drivers Station portion of the software (the lower window) getting updated but the dashboard (upper portion) not being updated.
If your dashboard has updated properly, it will most notably have a "compass-like" display widget on the right side. If it does not have this, then your dashboard has not been updated. The attached screenshot shows the dashboard that will work with the 2010 Vision Demo robot code. We found that un-updated dashboards do not display the camera image as they are out of sync with the data that the vision demo robot code sends.
If yours does not look like this
and you have already applied Driver Station update #1 linked from
http://www.usfirst.org/frccontrolsystem then these steps may fix it (they did for us):
1. Uninstall the driver station software by running the setup.exe included in Driver Station update #1 and, for each component, choosing uninstall. (note there is no typical Add/Remove Programs uninstaller)
2. Run, again, the setup.exe in Driver Station update #1 this time letting it install everything normally.