Would have given it a 5, but the Internet software didn't install. Got errors and continue to. I have a Dell XP SP3 2.8Ghx with only 1.5Gb ram. I'll add more ram and see if the low system memory errors go away. It's the only thing running on this machine. I have other machines, but this one has room for the large files it creates.
The picture quality is really good, and the sound picks up everything. For under $30 this is a good value despite the issues of the software and the errors. I figure it is an older machine and O\S, so doesn't matter to me. I just wanted it for security videos and it does this fine with good sound.
Haven't used it for video conferences etc., as I don't need this and the software didn't load for it. If you just want a cheap security indoor camera is a great deal.
Not that I would expect the files to be smaller, but just an FYI that at the 420x320 you can expect to burn up 1/2 a gig an hour. I was able to run another program despite the low memory (I do not have the recommended 2 gigs) and still ran good. It saves the files as wmv which play back well with Media Player.
This is an important factor as some cameras and programs out there save them so only their software can run it, so another reason for the 4 rating.
Bought an earlier version for a friend so he could Skype with a son in Iraq and that worked well to. Make sure you use a 2.0 USB extention cable not the 1.0 type.
Updated 1-30-2012 - Bought a New Dell Win7 machine with plenty of power so I could take advantage of the cameras resolution options. Now the sound doesn't work, Media player crashes if I want to advance the frames. Trying to use this for home security but seems like getting a machine multiple times faster isn't helping. This or the new media player can't handle the larger files. Annoying that Media Player crashes during play back but this IS a Microsoft product running on a Microsoft OS brand new out of the box. Downgrading the rating as it may still work great for Skype and for taking pictures but wonder how powerful a machine is needed or the correct play back program to run the videos on.
Updated 6-11-2013 - Have been using a newer Win7 machine with 2 gigs and is the only thing running on it. Software is bad, records but doesn't play back. Think this happened after an update to the software.
unhappy, like most MS products stops working after a while. Machine is running good and do not know why it doesn't play back recordings. This and can only use the low resolution to get it respond. Uninstalled and reinstalled and still having issues. I may need to get a bigger faster video card, and if so they should recommend this in the minimum system requirements.