Add Skins onto your Web cam with Videoskin
Freeware program VideoSkin.Net adds flash animated backgrounds and/or foregrounds onto your webcam video in real time. Allows you to create any skins you like using flash animation or just a JPEG or PNG images. Videoskin.Net is compatible with many video chatting messengers including PalTalk, Skype, Yahoo, ICQ, Camfrog and other video chatting programs.

Features:
· Replaces background with Fash animation or image
. Applies animation over image as a foreground
· Make frames or semi-transparent effects
· VideoSkin.Net enables the user to launch all of the visual effects in other programs (Skype, YAHOO, CAMFROG and etc.)
· Replaces your figure with an image or an animation
Download videoskin From here

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Quite a nice find, i use my webcam quite a lot to talk at home back in India, this would definitely be quite interesting to try out :).