Lets start with what works:
iMac iSight camera has full functionality in both iCamSource Preferences pane and on the iPhone.
However, I've got a D-Link DCS-932L connected to my wifi network. It shows a live feed in the iCamSource Preferences pane, BUT on the iPhone I only get a still shot from yesterday's feed of the iSight where the D-Link pane should be. I know its that pane because I've named it "D-Link". NO LIVE FEED.
This is what's especially strange - the motion sensing works on the D-Link, as does the recording function. So while I have no live feed, I can look back at recordings when the motion sensor is triggered just fine. Any ideas?