WebcamMax, located at http://www.webcammax.com/, works for MSN, Yahoo, Camfrog, Youtube, ICQ, AIM, Skype, you name it and it is compatible. The way it works is by creating a virtual webcam stream on your computer that each application can connect to, that way the applications are not locked out by using one hardware source. Essentially it takes the input and mirrors it off into a bunch of different channels, almost as a TV splitter would. In addition to affording the user the ability to use their video feed with multiple application at once, it allows the user to use 5 different types of effects. From transform effects to custom effects, they are all out there. From something as simple as changing the color of the users camera to black and white or complicated as making the user look as though he or she is sitting at the temples of Egypt, it is possible with this application.
Webcam max allows you to easily play movies or other sources such as videos. The user can easily switch between different video sources and even broadcast their desktop with ease. This makes helping a friend who may be having trouble with something. It also allows the user to show various watches what is being displayed by his computer. The ability to write and draw custom doodles on the screen enhances your ability to create a dynamic experience.
In my free time, I sit and play with the various web camera effects which are oftentimes just as fun as talking to my friends. It is easy to humor them by throwing on a pirate hat while I am sitting in my office, or drawing something on my screen.
Take a look at their software and obtain a free 30 day trial. I decided to use it after ManyCam lagged for me and would not display the video properly. I am running Windows 7 (RC 2) and it is running without a problem so I assume it will work on just about anything!