Apple’s support forums, with a slew of complaints that seem to point to a problem related to the way the app pulls the video feed from the iPad 2 camera.
I too have experienced this same problem on my ipad2, and so does my wife. It happens quite frequently. Restarting the ipad fixes the problem, BUT, it happens again within the next two to three times i go to use it. this is obviously some bug Apple needs to adress because its happening with a lot of people ipads.Same thing with my 64GB VZ. The manager of the 68th St NYC store said it has happened to a lot of his floor units as well. He said currently the only fix is to turn off iPad2. It is a bug in facetime I turned off my iPad and turned it back on, and it works! Thanks.Until the problem is fixed by Apple, possibly with the upcoming iOS 4.3.1 update slated to be released within the next couple of days, restarting the iPad 2 by holding both home and sleep buttons together for more than 10 seconds seems to be the only fix available. Note that in some extreme cases, a full system restore was required.