Here is what I used to make that video -
Video Cam I borrowed from the parents

,
Matrox Marvel G200-TV for the import to the PC. (the total video - un edited was over 4 gig big)
Adobe Premire to shrink it, and edit it.
and Real Media Encoder (comes with Premire I think). Then to make the interface I used a plug in called "Reality Bytes" for NetObjects Fusion v5.
You can do the same with a web cam. Just have it record to a AVI file, and in adobe premire edit it, and go through the Real encoder steps and you are all set!
If you want I can help you more via email or such about it. I have a background in Digital video and TV production. I have worked with a bunch of production quality Non-Linear DVE systems, and I really love that as a second hobby.
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C-ya
Joe
[This message has been edited by Joe (edited 02-25-2000).]