OK, we have a soultion! A friend of my daughter's found this... there is a blue icon of a webcam on the "F6" key, so pressing CTRL+F6 gets the camera working, and the Cyberlink software can then be used successfully.
Shame that the netbook manufacturer made no mention of this in the online manual for the computer (and there is no pdf manual on the hard drive, and no paper manual came with the item)