Since the camera is directly connected to the computer, you can't really put it on the Lego pieces - that seems to be the biggest gripe for ppl who bought this kit. Check on Amazon to read the reviews.
I have this rig. You *can* put it on the Lego pieces. The cable is like 15ft long... It's standard shielded USB cable and does pose issues, but they're not unsolvable.
anyone know what this camera's like?
It's a Logitech QuickCam in a Lego body. Servicable, but it's the Lego software that makes this worthwhile.
Motion detector!!!!
I used it to catch my wife cheating (no, I'm NOT kidding. Sigh.)
My son used it to catch Santa Claus (All he got was a video of Santa putting his hat on the camera... Muhahahahaha)
I found it in a thrift store for $5.

But I think it's worth $50. No more, though. The $125 is outrageous, but Lego can charge it 'cuz they're Lego.