Bryan Heisey has released a friggin' sweet new Flash vCam based on the original created by Sham Bhangal and Dave Dixon. It is compatable with CS3 (the old one wasn't) and has some really awesome new features, including blur and tint. Also looks like it's compatable with different blend modes. I love Flash.
V cam and CS3 - BryanHeisey.com
Be sure to watch the two demo movies, it's quite powerful.