I recomend the Kodak DVC 325 (less than $50).
I also have the 3Com HomeConnect (which might be discontinued) and have tried 2 different Logitech cameras and also a Kensignton and find all of themn are POOR!
The Logitech has a terrible pix and the software is bloated,. the Kensington doesn't work with some applications and the pix is poor also.
The Homeconnect is fair but complicated to try to adjust if you don't know cameras and video. I did video production for over 5 years so it wasn't a problem for me, but I can see most wopuld be lost trying to adjust it.
The Kodak is the only one out of the 5 or 6 cameras I tried that was half way decent.
I'm waiting for the USB 2 cameras to come out.
The software is what saves to video to the hard drive.
Videowave, MediaStudio etc.