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I'm looking to get a web-cam for doing basic videos at home, and potentially chatting with remote clients (so quality is a somewhat important feature).

I have never before needed a web-cam, and so haven't bought one. Is there a decent "off the shelf" package of camera+software that is decent/intuitive?

If not, what camera/software combination do you prefer, and for what specific reasons?

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Whilst not an answer to all your questions, the following recent post from Scott Hanselman may be of use:

Review and Comparison: Microsoft LifeCam Cinema HD and VX-7000 with High Quality Video in Skype and Live Messenger

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I didn't believe him when he said $60, but here it is for now: techonweb.com/products/productdetail.aspx?id=A05JUJ&src=PG – hyperslug Oct 15 '09 at 9:29
Sadly it's not so cheap in the UK - despite the exchange rate its the same amount of pounds as dollars! – Sliff Oct 15 '09 at 10:23
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