Most webcams are really really terrible at capturing video. Anyway, guess you're on a tight budget.
You could give a look through some of the higher-end models from Zebronics - they were priced at around ~1.2k. Saw a demo of those, and they looked surprisingly good for the price. I vaguely recall odd names like Eagle, Hawk eye, etc and from what i know their 'Cobra' model seemed to produce the most natural looking video - but at that time it was out of stock.
Microsoft have their Lifecam VX-3000.. however it should be fairly more expensive. And i never did demo it, so cant compare how it is :huh: