If you have an EyeToy and you want to get it working as a webcam read this guide.
First download this file . Contains the drivers for windows. Now you must identify the version of webcam you have. Just look at the bottom of the stand.
You will see a Product ID code like SLEH-00031. You can find two versions, Sxxx- 00030 & 00031.
Inside the file you downloaded, you can find two folders, 30eyetoy and 31eyetoy. You can use the appropriate code for the drivers. Connect your EyeToy into your USB port. Windows will recognize the device as "EyeToy USB Camera Namtai".
A pop up window will appear asking to install the drivers.
Choose "Install from a list or specific location [Advanced]" and click next. Select "Search for the best drivers" and check "include this location in search" and click to "Browse" to search for the drivers. Now click next.
Windows will search and install the -modified- drivers. When you see a window "Hardware Installation". Just press "Continue Anyway".
Next you will see another small window. Just press OK to move to next step. You will be presented with the configuration screen for the drivers. Select "Yes" to finish the installation.
Installation is now complete. Now the EyeToy will working like a webcam. The built in microphone will also work. You can test your EyeToy-webcam with MSN messenger.
Props to ionstorm for drivers.