At £25 this is a fantastic purchase. I bought one to keep in touch with my girlfriend overseas, and it does everything it says on the tin.
At 2 mega pixel resolution, it is a nifty little device, that has high enough image quality to be perfectly good for chatting and general use. Unfortunately this resolution isnt really enough to use it for taking snaps, but honestly, how many people use their webcam for that anyway?
The built in mic is adequate for chit chat, although I use a stand alone one now, simply due to the webcam mic picking up more background noise than I want to transmit.
This camera comes with a 'flash' style light, supposedly to help in those low light conditions, however this is a bit gimmicky, and doesnt actually help a great deal.
If you're looking for a cheap and cheerful webcam that you can use for everyday Skype/Msn chat, then this is ideal for you. However if you're looking for something for video conferencing, then I suggest splashing out a bit more cash, and getting something a bit higher quality.