I have used WebCamStudio in the past and enjoyed working with it. It has been a while, but I tried it the other day, the first thing I ran into was the error that it could not start because of not being able to find java (it is looking for Sun Java 6) it would not work with the open JDK. Well I removed it and went about doing some other things with VNC, then I saw the daily build, so I downloaded it (0.64) and ran it, it ran quite well, it found the open jdk and worked just fine. It appears that things have changed in the User Interface, I can not figure out how to rapidly switch sources (two web cams and a recorded video source) so I am wondering is 0.64 still a work in progress?
I was able to get .57 to run but I had to go in and change line 42 because Java-6 installs a slightly differnet path than the script calls for, so you get the horrible "The module webcamstudio is not loaded. Virtual webcam will not be available..".
I would like to find some more documentation on 0.64 as it does appear to run, I just am not familiar with the changes done.