Great quality as always.

This camera is another masterpiece by logitech, we have tried many other brands, but always return to this one, because it has good quality for a good price. Even though it costs a little more than other brands, it works perfect with such messengers as yahoo, msn, skype andicq. For us, it works best with skype and icq - the video quality is super crispy and the sound is clear. Msn and yahoo have a pretty desent quality as well, I personally assume the quality depends on the messenger and your speed, not only the webcamera. 
One thing I didn't like about it is the autofocus option. If you don't sit sill as you talk to your nearest and dearest over the internet, the autofocus will keep following your face as you move, and your friends/family can actually get a vertigo from watching the autofocus trying to keep up with you! I always turn away this option.
Aside from that, this camera sits very well on top of the monitor, it has a nice clip, so you can always adjust the angle of the camera, twist it in many directions. It works pretty good when the lights are dim, the natural light and/or some additional source of lighting works best for it. The quality of the image is good and the colors look very natural as well.
Oh, you can even take a nice photo of you too with this webcamera!
It also has an option to add some features to your face like a hat and glasses, a beard or a wig, and so on, how funny is that! But I don't use it often, really.