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PocketCam lets you use your iPhone as a wireless webcam (and microphone!) for your Windows-based computer or Mac (OS X 10.4 or above). PocketCam automatically forwards video captured by your iPhone camera, which can then be used as if they come from a virtual webcam. PocketCam works with any Windows-based webcam or video conferencing applications, including instant message applications such as MSN LIve Messenger, Skype, AIM, etc.
(
Use your iPhone, iPod Touch as webcam.)

YouTube Video: youtube watch?v=A69c4HHok3U
Why paying for an expensive webcam when you can use your awesome iPhone for video conference? Better yet, your iPhone webcam is wireless! Now you can use your iPhone to show around your house/apartment on your favorite instance messenger applications such as Windows Live or Skype.
PocketCam lets you use your iPhone as a wireless webcam (and microphone!) for your Windows-based computer or Mac (OS X 10.4 or above). PocketCam automatically forwards video captured by your iPhone camera, which can then be used as if they come from a virtual webcam.
PocketCam works with any Windows-based webcam or video conferencing applications, including instant message applications such as MSN LIve Messenger, Skype, AIM, etc. For Mac users, PocketCam works with any Mac applications that use QuickTime for video capturing, including GTalk, Skype and aMSN.
You can even record the live video from your iPhone cam using a webcam recorder such as QuickTime Pro.
INSTRUCTIONS:
1. If you have not already done so, download and install the PocketControl for Windows or Mac software from our website: senstic iPhone/PocketCam/PocketCam.aspx
2. On Windows, run PocketControl for Windows and make sure the PocketCam service is running on your computer. On Mac, run PocketControl, and run any application that uses webcam and select PocketCam as your preferred webcam.
3. Start PocketCam on iPhone, and the app will automatically connect to your computer. The bottom of your iPhone screen should display "Connected to your_computer_name:port."
4. Start any program on your computer that uses webcam, and select "PocketCam" as your virtual webcam.
Enjoy live feed from your iPhone camera as your webcam source!
Step-by-step instructions can be found at senstic iphone/pocketcam/Support.aspx
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