The camera can be reversed for front-facing or rear-facing needs and appears to have a firm magnetic grip on the top of the laptop when deployed. However, as seen in the unboxing video below ...

According to 9to5mac, which has done further digging into the latest iOS 4.3 SDK, the iPad 2 will have a 1 MP rear camera capable of shooting photos and videos, and a VGA front-facing one for FaceTime ...