VirtualCamera
VirtualCamera is a fake software camera can be installed on Windows 98 ME 2000 and XP. It can use your former medias, say pictures, video clips or flash movies, etc. as its source, and let your application use it as a real camera. Most popular IM software like MSN Messenger, Yahoo! ... VirtualCamera can easily switch it's input to your real camera. ... But if you haven't camera, you will lose some interesting things. ... and easily switch it out. ... Sometime you want share some pictures to your net frients, or you want to play your movies to them.
http://vcam.2ya.com/vc_demo064.exe - 672Kb - Download - Screenshot

MagicCamera for MSN Messenger
MagicCamera for MSN Messenger is an advanced companying application for instant messengers. Although it is called MagicCamera for MSN Messenger, It is also suitable for other popular instant message software like: Yahoo Messenger , AOL Instant Messenger, ICQ, etc. ... MagicCamera for MSN Messenger adds a virtual/fake web camera with a lot of magic video effects to your system. ... Add various fantastic video effects to your web camera/video files/photos/screen and show it to your friends. ... Add a virtual web camera to your instant messenger even you have not a real one.
http://www.shiningmorning.com/software/MCSetup.exe - 6Mb - Download - Screenshot