Usb Video Capture is the one I've used before with good results, and yes it does do Audio in stereo as well don't ya know.
Axis P1344 indoor, HD 720p, varifocal DC-Iris lens IP security camera with day/night function, on-board SD recording, H.264, PoE
That does 30fps, in HD too, with Audio. There's a 3.5mm jack in, so you could and should use an external mic as all integrated mics in camers will be useless. Especially for music.
I've used DV camera > Canopus ADVC-300 > QT broadcaster > VLC in the past.
Of course any DV cam (even analog) and AV capture device would do the trick.
I've used exactly the same card that Maniac suggest above, with a Sony HandyCam, streaming via Windows Media Encoder (mentioned previously in the thread too).
I think I'm correct in saying there is a limitation of 5 or 6 feeds from Media Encoder. I did try and have a play with Microsoft Expression Encoder first, but couldn't for the life of me get it working, so reverted back to Media Encoder as i'd used it a few times previously. Works flawlessly.
You can set it up to stream direct from a host PC next to the source camera and distribute over the lan. At the classroom end they can access via Media Player / Real Player / VLC via mms://hostipaddressortnumber
*Edit - Replace the smiley face with a : and a portnumber!
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