This is such a common issue with the TF201 and I would categorize it as a design flaw. Changing software settings won't make a difference as this is not a software issue. Rather, it is a hardware issue. Bad cable connectivity is usually to blame, which is why pinching near the camera's location works to temporarily restore the connection (although sometimes, the camera is broken as well). There is an [http://hardware-today.com/articles/tablet_pcs/asus_eee_pad_transformer_prime_tf201_disassembly_procedure_and_how_to_replace_a_camera|iFixit guide for taking apart the TF201] with an emphasis on camera replacement - although again, you probably don't necessarily need to replace the camera - it may be enough just to disconnect and reseat/reconnect the necessary cables and connectors. YMMV