webcam and mpeg4...where does the compression take place?

Archived from groups: comp.dcom.videoconf (More info?)

Hello everyone

I'm new to webcams and the technology of compressing video streams. I
want to purchase a webcam that will give me the best image quality over
the Internet. I have read about MPEG4 & H.264, but I am confused. Do
I have to purchase a webcam that does MPEG4 or does the compression
take place in software like Yahoo IM or AOL IM??

Looking at the Quickcam orbit.

Thanks!