According to the specs, it uses H.264...so it won't work with iCam until SKJM adds H.264 support. Many people seem to be asking for it, and they recently indicated that they probably will add H.264 support at some point in the future...but who knows when? They have to pay licensing fees for H.264, so I'm sure they'd have to find out how much and how to modify their product pricing to accomodate the licensing fee. I hope they figure it out soon!
Also, since Dropcam is really an IP camera, have you read reviews from Amazon or elsewhere concerning the sound quality? I'd think it'd use a better compression method for the audio since it's using better compression for the video as well...but since audio quality is important, you'll want to double-check it. Added bonus for the Dropcam...it appears they have an App to make it easier to use...and it supports 2-way audio, so no messy Skype setup so you can talk to your dogs. Maybe their app even includes push notification for motion?