Wow I had a real long post here and now its gone?
http://www.hyperionics.com/index.html
That is the link to Hypercam. I have had no problems with it and you have the added benfit of being able to select the area you want.
To display it you need either;
Flash ants's FM Player/ projector- this will allow you play the Real Player or MS Media file directly inside the SWF.
or
vid2swf or Flix to convert the AVI to SWF then use load movie commands.
or
A third party projector tool like swiff canvas or or Juglor+Jtools