Cheap video camera upgrade advice for web streaming

Over at the Oklahoma Social Media Ning group, Bill asks:

Been messing with streaming video for my blog and plan to stream a course I will teach, about Social Media, next semester. I hear you are a pro and thought others might find your thoughts of value so I am posting my questions on the forum - hope you don't mind.

I think I want to upgrade but need to do it on the cheep - been using a logitech attached to my laptop but want to invest in a camera - suggestions on a good inexpensive camera to use?

I use ustream.tv to allow twitter and chat. I also use adobe flash encoder to improve the stream. Is there a better alternative?

Can you offer Bill some good camera upgrade advice?

http://oklasocialmedia.ning.com/forum/topics/streaming-video-questions