The camera on my aging K-Jam (HTC Wizard) isn't too bad. It's lower resolution than on more modern phones and thanks to a couple of drops not quite the quality of when I got the phone.

The camera app in Windows Mobile in the "raw" version of the operating system is pretty sparse (most Mobile Operators who brand the device - from HTC to T-Mobile etc - add an upgraded camera. Because I dogfooded WM6 to help make it better for you I'm stuck with the minimal camera functionality) and there's no way even when tethered via USB to use the camera in a phone as a webcam.

Life has got a lot better since I discovered CoolCamera and WebCamera Plus from Ateksoft.

The first app adds a very quick responding and easy to use camera that's over and above any of the pre-installed phonecam applications I've seen to date. Makes me wish I had a few more pixels!

The second adds the ability to use the smartphone camera as a webcam, connected back to your PC via a USB, Wifi, Bluetooth, 3G/GPRS or LAN connection. You can control the settings and functionality from either the phone or the PC app and if you're using something like Windows Live Messenger then the phone can become your connected webcam