Could be that I did wrongly during the setup part, I shall retry with the setup.
By the way, mcgangsta, since you managed to tested it,
1) does it use the front or back camera when in web cam mode?
2) when in web cam mode, are we still able to use our phone as per normal? eg, receiving or
making calls, texting, etc..
I havent tested it so long that I would have received a call... But, I believe Market tells you what Droidcam is able to handle...
It uses the back camera.