Software to display a webcam stream
It doesn't need to record. All it would do is take the stream from a webcam, and then show it on the screen. The Preview functionality of most recording softwares (like Movie Maker) isn't any good, due to the size.
The idea is basically the same as those visualiser tools where students get to view whatever's on a teacher's desk, for example when they're marking a mock exam paper in front of the class.
There are plenty devices out there available for purchase, it's just that we're looking to make a homebrew version so we don't have to fork out £70 for the privelege.