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We just change the Motion Event folder in iCamSource so that it points to the Dropbox folder.
Regarding the Change button, when you click it, it should open a folder selection window. If you select the Dropbox folder (usually /Users/<your_username>/Dropbox), then iCamSource will store Motion Event images in the Dropbox folder. Moving the folder by dragging it won't do anything because iCamSource will just create a new folder in the default location.
You should be able to the motion events folders in the Finder by going to Macintosh HD/Users/<your_username>/Dropbox/
Do you mean a preview window that just shows video from the webcam and doesn't show any of the settings? I can add that to our list of potential features to add to iCam in the future.