USB Webcam works well with Hardy!
I noticed a lot of anguished posts about webcams and Ubuntu on this forum and on other websites found through Google.
I recently installed Ubuntu Hardy Heron (new user, fresh install on windows dual boot machine) and my Microsoft VX 3000 webcam (or is it 6000?) works right away. The image is a bit grainy in programs like Camorama & Mplayer but Skype for Linux gives a great image. The microphone built into the webcam is also recognized.
I found this other webpage that might be helpful to people looking to fix their problematic webcam/microphones..
My experience was almost identical to his. Chin up everyone!
(On the other hand, these people seem to have had a hard time.. before Hardy Heron? http://brainstorm.ubuntu.com/item/97/)