I decided my next step with the webcam was to attempt some motion tracking. After a couple nights work I managed to get something working fairly well.

The short explanation: I created a grid of squares over the webcam input, and each square is checking to see if there is a bright light under it. If it sees a bright light then it tells a green square to move to that position.

Update 12.17.08:
Here is the source code folks:
download source

This is the code for exactly what you are seeing in the video. I won’t be providing a whole lot of support for this version since I have moved past it now in the interest of improving it, and am focusing my energies on those versions (which I may be releasing at a future date).