Most webcams come with software which is in most cases filled with gimmicks. They normally lack the ability to capture webcam streams and process video capture tasks. In that sense, adding icons to your face while in chat is not that useful.
These programs are able to capture webcam streams and save them as AVI or MPEG files. The more advanced programs can also convert the save videos to DivX or XviD format for easy sharing.
The most popular programs on this list are actually freeware while some of the others require registration after the trial period has ended.