CamDesk is a free, open source, desktop webcam widget, that was created as home surveillance application. Although others have used it for demonstration purposes, and even with CamStudio for screen casting.
For those that are looking into displaying images as widgets on your desktop similar to CamDesk, checkout WidgetArea. It's free, open source, and available for Windows, and Linux as well.
If you have any questions or concerns regarding CamDesk, or it's development you can ask the team on our Facebook Fanpage.