Are you running the camera utility as an admin? Not doing so can cause issues talking to hardware.
Do you have these variables in System\Environment?
sopc_kit_nios2 c:\altera\10.1sp1\nios2eds quartus_rootdir c:\altera\10.1sp1\quartus (Obviously you'll need to change 10.1sp1 to whatever your version of quartus/nios named those folders)
It might be worth trying Terasic's tech support as well: support [at]
terasic.com I ended up fixing the issue with info from these forums, but they respond quite quickly and might have some other ideas as well.