How can I connect integrated webcam with virtualbox

I am trying to use a Windows XP VM for VirtualBox on my Windows 8.1 laptop. I have tried the usual attaching USB device but I get an error saying "USB device is busy with previous request". My webcam is not active in any applications and this happens after a clean reboot of the host, the guest, and VirtualBox.

Here are the details:

Host
-HP Pavilion 17 Notebook PC (stock)
-Windows 8.1
-AMD A10-5750M APU
-HP Truevision HD (integrated webcam)

VM
I got the VM here: http://www.modern.ie/en-us/virtualization-tools

VirtualBox
-VirtualBox 4.3.12 installed
-VirtualBox Extension pack installed
-Guest additions are installed for 4.3.12
-Enable USB Controller is checked
-It does not matter if enable 2.0 controller is checked or not -It does not matter if a USB device filter is set up for the webcam or not -Here is the error message:

Failed to attach the USB device DDFEQ01G45BFBV HP Truevision HD [0004] to the virtual machine IE8 - WinXP.

USB device 'DDFEQ01G45BFBV HP Truevision HD' with UUID {7a2e2a45-974d-482b-9b4e-9f9abbcd0ebb} is busy with a previous request. Please try again later.

Result Code: E_INVALIDARG (0x80070057)
Component: HostUSBDevice
Interface: IHostUSBDevice {173b4b44-d268-4334-a00d-b6521c9a740a}
Callee: IConsole {8ab7c520-2442-4b66-8d74-4ff1e195d2b6}

I read on some VirtualBox forums that disabling USB 2.0 support in the host BIOS solved their issue but I wanted to know if there were any other ideas before I muck around in there.

Thanks