[nsjong]

Title states the basics, budget being around $40 USD max.
Any decent ones you guys can recommend? Thanks.

 

[Squeek]

My GF and I both use the Logitech Quick Cam Fusion. Great little camera.

 

[terrymx]

I bought a Logitech QuickCam Communicate STX for $35. I don't use it for chat, but just upload some video on youtube. I haven't own one before, but this look alright. You can turn off the software lighting for very smooth WMV recording, which look better than the pictures it takes too. These stuff seem like they wants a lot of lights into the lense though. The leg holder thing is pretty flexible to twist around and the camera can turn 360*. A button to the side for instant photo taking.

It also has its own mic that you can use individually, its alright.