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I've used this webcam nearly every day for six months and it's not failed on me yet. Even with HD enabled its actually closer to 480P than to 720P but it's still the best I've found in its price range. colour is clear and true to life, but it's a bit sensitive to background light sources, this is easily sorted by using the software that comes with it to fiddle around with the settings until you are happy. Its plug and play so you just shove it in, let it update, press a few buttons and you are good to go. Its Skype compatible and can be used in online video share platforms such as Tinychat or google. I've never had a problem with it with Skype, but it can be a bit grumpy with other platforms, you just need to fiddle with setting to get it working again. It can also be used to capture video if you download some free software, but because I've never done this I'm unable to comment. It can also be used to take photos that are easily uploaded online or saved to your computer. The webcam also has its own built in noise cancelling microphone that is actually not that bad for a webcam microphone. I would recommend getting a good quality microphone to use as well as but you could get away with just using its own microphone.
Overall, this is a good little camera that's really easy to get working, user friendly and has good quality capture.
I bought this web cam around 4 monthis ago, its a fantastic little web cam for the price. I payed £29.99 from Amazon, a bit of a bargain when you consider how good this web cam really is. The main thing I use it for is for HD video chats in 720p definition, this is done at the click of a button and is ideal to use with software such a skype. Theirs no software installation so its simply plug and play. You do have the option of downloading the free live central 3 lite software which allows you to record 720p videos and easily upload them to sites such as youtube. The web cam also snaps photos at a fantastic 5.7mp, again these can be uploaded at the press of a button. It also has a built in noise cancelling microphone, this really does make as difference as the sound is really smooth.
The main pluses for me are the fact that you can record video upto 30 frames a second, one touch upload and the excellent quality of the video. Highly recommended if you are looking for a web cam with excellent video quality and easy to use.