I bought a $30 QuickCam and was off and running in less than 2 hours of prodding. It should take you less than 20 minutes with this I hope.
Here are the details:
1. Buy a QuickCam camera (cheapy.. like the Chat QuickCam).
2. Install your QuickCam Software and QuickCam. Restart.
3. Download and install the Windows Media Encoder.
4. Download and install the Windows Media Encoder SDK.
5. Try this VB 6.0 program to start up the streamer. (you may have to add Project->References Windows Media Encoder)
6. After you do that you can set the port (8080) and video attributes using this program.
7. To see it streaming open windows media player and File->open url http://COMPUTERIP:8080 or whatever your setting are. Don't forget the http:// or it won't work.
It also streams sound so set your mic or line-in.
Here is another fun thing to toy with: QuickCam SDK
Well have fun. And happy new year. If you have a party, stream it to me please. I'll be alone this year with a bottle of Gin and Astle and Kevin's "Beginning OpenGL" book.