OrangeWare makes the WebcamDV software that will turn your camcorder into a Webcam. The software actually tricks Windows into thinking the camcorder is really a Webcam. You can download the trial version from their website and then upgrade to the full version for $20.
What makes this software different from the free Webcam drivers that some camcorders use? WebcamDV streams the video through FireWire, which offers high-quality picture and video. You can see the picture quality for yourself in the comparison shots at the end of the article.
The install is very easy and quick. Afterwards, simply plug the camcorder into the FireWire port and start up your favorite Webcam program. You can see below that Yahoo Messenger easily recognized the Panasonic camcorder. In fact, your camcorder will show up as "WebcamDV Capture" in any Webcam software.