Peripherals: Best webcams (lower <$70, higher >$70, street prices)?

Best webcams (lower <$70, higher >$70, street prices)?

I was wondering if anyone had any suggestions for good quality webcams at the above price points? I should say that my priorities are:

(1) picture quality and ease of use
(2) software (including in the box and connection)

I have two girls (3 and 6) who do not see their grandparents nearly enough and I want them to be able to do so. However, I have seen some really poor video from some webcams and want to have as good a quality going out (the system has an AMD 3000+ XP, 512MB, XP Home) as I can get (for the grandparents to view), while having at least better than average coming in (all systems meet the minimum requirements adequate for the purpose, based on specs I have seen for most webcams).

I haven't found any very recent threads on this, so I would appreciate your help. Some webcams I have looked at online include the Logitech Ultra and Fusion, the Creative Live! bunch, Microsoft's lifecams (found at BestBuy and others), and some other no-name/lesser brand webcams.

I guess this brings up recommended ways to connect the computers. I guess the various IM clients and services, such as Skype, are the obvious choices. Any suggestions for the best/biggest picture? I'm willing to spend some money for a service, if it is worth it, but would prefer cheaper/free.

Any help is greatly appreciated!

Best regards,

Scott