According to the Linux UVC supported webcam page, found here http://www.ideasonboard.org/uvc/#devices
, that camera should work.
One thing you need to make sure of is that the webcam is plugged in when the Nexus is booted. Otherwise, the driver will not be loaded and the webcam will not be accessible. I have found from my own experience that occasionally, it takes two consecutive reboots for the webcam driver to be properly loaded.
There is a way to make the camera plug and play capable as long as it was connected at first boot which I can link to if you're interested.
From there, I know that some apps are better at loading the second camera better than others. I personally use Mirror for my own as I use it as a backup cam for my car installation and have no need to actually take pictures with it. If you do want to use it to take pictures, you probably will want to try a a few different camera apps.
Sent from my Nexus 7 using xda app-developers app