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It almost sounds like your clipboard is full and it isn't clearing itself. You can run the command "echo off | clip" (without quotation marks) to manually clear the contents on the clipboard, or alternatively install and run CCleaner to clear the data stored on the clipboard.
I would assume that it's so you can filter out certain types of traffic from servers, such as a wireless billing server, for security purposes or for exercises. You don't want secure information going through networks that may not be secure enough to keep them private.
Might be a lot more doable if you give the photoshopper an image of you at the same angle, but standing on the floor. They can use that to get around the issue with the pillow.
You could give a 3rd party application a try. The Logitech forums have a list of 3rd party software here: http://forums.logitech.com/t5/Webcams/Third-Party-Software-Listing/m-p/268118
One that sticks out is a familiar software application called VLC Media Player. To get it to show full screen...