Are there privacy concerns with the Built-In iSight Camera and LED Indicator?
I don't think turning off the green light while accessing the iSight is possible. I have checked the following sources for evidences against:


Security software like Prey and Undercover - They are highly motivated to do so, but unable to.
Drivers for other OS-es (Linux).
Forums, mailing lists and security advisories.


And the conclusion is:


  All Apple laptops have cameras that cannot be disabled (unless the LED is burnt out). Due to the way the iSight is set up electrically, the green light will always be on when in use.