Well I had some extra money which is a rare event for me, and decided to foolishly squander it on this new Microsoft web cam. I'd been looking at newer generation web cams for months, and was interested in this one even though Microsoft took a while to actually sell the darned thing.
Immediate caveat: This camera has a non-adjustable clip on the back of it that BARELY fits onto the top of a Dell notebook. There is no way to affix it to the top of an LCD or analog monitor without using Velcro or some other method to jury rig it. Also it has a short USB cable if you want to use it on your desktop. It's like 5' or so.
The good news is that the picture is awesome! The built-in microphone works great and it actually worked extremely well at the JetBlue hotspot at JFK, which is darned noisy.
It does work with the latest version of Microsoft Live Messenger. It claims to work with Yahoo's IM, but I have had zero success with it trying to interact with Yahoo IM users.
It also works fine with Comcast's video mail system.