I'd buy a separate webcam, they're not that expensive - £8.99
http://www.comet.co.uk/cometbrowse/p....do?sku=370436
As for the camera, I'd go for the Canon PowerShot A550 - £109.99
http://www.comet.co.uk/cometbrowse/p....do?sku=380903
or the Sony DSC-W35 + Free Sony Printer - £119.99
http://www.comet.co.uk/cometbrowse/p....do?sku=392103