I saw that there was a $10 digital camera on sale at OfficeMax today.
You can see the camera here.
There's a OfficeMax nearby and I called and indeed they had them in stock. They are $15 with a $5 mail-in rebate.
At lunch, I headed out with Brad and Yoshi in search of this 'too good to be true' deal.
I bought two. Yoshi bought one.
They are basically webcams that allow you to take up to 27 320x240 pixel images without being connected to the computer.
Here are the images. I converted the 225k bmps to jpgs for web viewing. There is no degradation in quality from this conversion.
We tested webcam mode and it works as well. So if you want a cheap webcam, this may be your answer.