I'm running Windows 7 x64 and I bought a Samsung Focus yesterday.
I'd really like to use its 5 megapixel camera as a webcam for myself, is there any software out there to do something like this for Windows Phone 7?
So it seems like the camera is unusable for video streaming application. You may have to wait for an update to the WP7 SDK that may enable free use of the camera. For the moment, as that article says, the camera can only be used by the Microsoft applications that come with the WP7.