In case anyone has struggled with this, figured I would send out my experience.
This app allows your Droid to be used as a PC camera. People have been hounding me to go get a "web cam" for my PC, so we can have video conferences, which can run anywhere from $20-$100 and more. But it seems there must be a way to simply use the Droid camera for that purpose.
There is an app in the market called "USB Camera" that performs this function. However, it is in early stages of development, not so user friendly, but when I finally followed all the steps and hints it works fine. I needed video for Skype on my PC, and now have it.
In addition to installing that app on your Droid, you also have to install a driver on your PC from here: USB Webcam for Android Download – Windows. This page is windows, there is also a Linux driver.
I thought once I download and install this driver, all will be well. Not so, you also have to open Windows device manager and then "finally" install the app. Basically select update driver within device manager and point to C:\Program Files\USBWebcam and update the driver. Evidently this really installs the driver. Then you have to execute USBWebcam.exe under the programs menu, under USBWebcam, it will open a DOS box and get the program running. Then of course you have to execute "USB Camera" on the Droid.
Key thing is the video linked at USB Webcam for Android Download – Windows shows all of this, really hard to read it. Point being this is a cool app and really does work. Thanks or the developer, we appreciate it, hope for updates as time allows.