Others say...

"Avoid this camera"
I purchased both the MSFT LifeCam VX-3000, and the Logitech 9000 webcam. The latter far surpasses this item, although it costs ~$70 at the moment, double the price of the Microsoft webcam.

I'm in Asia (with the Logitech 9000) and communicate with the United States (and receive video from someone with a MSFT LifeCam).

Pros:
+Cheap
+Compatible with Skype
+Comes with built-in microphone
+Light weight

Cons:
-The picture is very grainy and dark.
-Not very stable (physically)
-Just an overall bad picture (I'm on the receiving end of the LifeCam).
-Sound from LifeCam fluctuates during a call (too soft, too loud)

Although the quality may be due to interference (as I'm communicating on the other side of the world), I think it's just a horrendous webcam.

I did a lot of research before buying, and from the Amazon reviews, it sounded like a decent camera. However, I would definitely advise against buying this webcam.

Spend a few more dollars and get much better quality. Head for Logitech.

"Pathetic"
This item is a pure disappointment. firstly everything is dark, just dark increasing the brightness, contrast or whatsoever do not even help. do not purchase this webcam. the resolution is beyond nasty. this webcam is just bad

"vx-3000"
Well, at first they sent me the Microsoft Lifecam vx-1000, so after about 2 weeks I finally got what I ordered and it works like it should with no problems.

"Was disappointed!"
I got this camera to operate on my Vista OS. I was so surprised at the lag between my voice and the video. This may be caused by my internet connection but I do have cable broadband. It's just an alright camera and if you want something more high quality then stay away from this one.

"Alright Webcam 4/5"
this webcam i got for free,i heard that it retails for pretty cheap so right from the get go i didn't have many expectations.I just needed something that i could take decent quality pictures with and maybe a video here and there.Having had it for a few weeks now i can tell you that its a good buy.I would recommend this to all those people who have older pcs/laptops and don't have the built in cam this also make a great first webcam if you've never owned one before.The only problems that i had with it is that the stand is kinda flimsy its not very secure on your flat screen monitor.Also i wish that it had a shutter or something to cover the lens when it's not On and a button that snaps pictures automatically is another feature i wish it had.To me the button on the top is kinda annoying cause i don't use it for MSN, but if you do this is a very convenient feature that allows you to connect instantly with your friends in video chat.The software that comes with it is the standard program stuff that allows you to record and take pictures.Overall it's probably one of the best camera i know of in its price range.This is a definite buy if your considering owning a webcam and even more so if you're planning on using it with MSN.