Hey Chris,
You may need to download the plugin, which you can do here:
https://tools.google.com/dlpage/hangoutplugin
Also, you might have to give access to your camera and mic, which you can do here ...
To allow Google Hangouts and/or Google Talk to use the camera and/or microphone:
1. Open Google Chrome.
2. Select Chrome-->Preferences.
3. Scroll to the bottom of the window and select Show Advanced Settings...
4. In the Privacy section, click on the Content Settings...button.
5. To enable the Microphone: Scroll down to the Microphone section and select the radio button next to
Ask when a site requires access to your microphone (recommended).*
6. To enable the Camera: Scroll down to the Camera section and select the radio button next to Ask
when a site requires access to your camera (recommended).*
7. Close the Chrome Preferences tab. When a website or app needs access to the camera or
microphone, a pop up message will appear to choose to allow or deny access to the resource.
* For some versions of Chrome, the section may be named Media. The radio buttons in the Media section to
enable the microphone and/or camera will be the same as described above.
Let me know how you get along. =)
Gassho
Shingen
Sat/LAH