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I solved this problem by installing Ubuntu 12.04 and ROS indigo. Apparently usb_cam package is not working on ROS kinetic. Also ROS indigo doesn't work on Ubuntu 16.04 so I had to downgrade to 12.04 for that.

I'm still getting calibration errors but there are online tutorials to calibrate it. I'm getting video output now on Rviz so i can calibrate it.

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