Microsoft LifeCam VX-3000

Pros: Easy installation. Works okay in low or bright light. 'Hangs' nicely from my laptop screen. Has a face tracking option and can be adjusted on several levels - brightness, contrast, gamma, etc.

Cons: Minor - needed to reinstall the sottware once. When the camera is used for direct recording there are a few cute 'add-ons' - cartoonlike snow, rain, insects, tennisball, etc. But this function is not available when used onlne in Windows LM or Skype.

Summary: All in all, a decent camera or the money (~$25). I wouldn't make a commercial/professional presentation with it, but it's great for talking with family, friends and even a few business contacts.
Meshes flawlessy with Windows Live Messenger and Skype.