I don't think that drivers would matter in this case since you're obviously getting some kind of signal, albeit a blurry one. I know that my lens can be turned about 5 times, so use whatever program came with the camera that shows your camera feed, turn it on and keep playing around with the lens till you get a sharp image. Also, most cameras that are under $20 don't give you a crystal clear image, so the picture might just be a little fuzzy. Make sure the room is well lit too, that can help the image quality.
P.S. Try taking a screenshot of the camera display focusing on something about a foot away from the camera itself and that might help other posters that have web cams tell if the distortion is what the picture is supposed to look like.