I have had this webcam since it was released many years ago and have to say: it still serves me well to this very day. Let's start with the basics...
The picture quality of this cam is very clear, and pretty crisp. You can take a photo with resolution reaching 4mb (2304x1728) resolution which means you can snap your beautiful mug big enough to print on a canvas if you so wish.
The video quality of this webcam, especially for its time, is top-notch. This webcam is designed to function optimal when connected via Hi-Speed (2.0) USB. It will still function very well on USB 1.0, and I know because I use it via this.
You can record video in HD (960 x 720) which again, is pretty impressive when you consider this webcam was released back in 2007.
Aside from picture and video, everybody who's ever bought and used a webcam knows that the lighting settings and capability are absolutely crucial to achieve good quality, and clear imagery. With that said, you need not worry with this cam as it has what's called 'RightLight' (2) technology / which you have the option to turn on or off. What that does, is auto-correct your light surroundings to best suit.
You can also manually adjust lighting, brightness and other things to per'fect the image of your recording. All in all, this webcam is one of the best choices for a market flooded with webcams that perform badly under most light conditions. The inherent technology embedded in this cam, makes it work better.
There's also the little feature of adding silly masks over your face, within the Logitech software if you so wish, but I'm sure this won't be of supreme importance to most people.
Overall I would say this webcam is a very good webcam, with great picture and video quality, decent brand software and good customization options available for premiere recording.
We're now in 2012, so there are no doubt better webcams out there now, but even today I hear that this cam still holds up to many higher-priced and newer cams.
If you are a general home user or even a partial hobbyist and went a webcam for clear video calls and creative outlet, I'd recommend this webcam as a good option for you.