Is your webcam plugged into a USB hub or extension cable? If so, please try plugging it directly into the computer.
Please make sure there aren't any other video capture programs (such as Skype) running. They might be fighting iCamSource for access to the camera.
Also, if iCamSource is crashing, there should be crash logs.
The crash logs would be in:
/Users/<Your Username>/Library/Logs/CrashReporter/iCamSource_<date_time>.crash.log
or in:
/Library/Logs/CrashReporter/iCamSource_<date_time>.crash.log
If you are running Mac OS 10.6.3: they moved the crash logs to /Library/Logs/DiagnosticReports or /Users/<YourUsername>/Library/Logs/DiagnosticReports
If you are running Lion: it hides the ~/Library directory for some reason. You can get to that directory by running Finder and then holding the Option key while clicking on the "Go" menu at the top of the screen. If you're holding down the Option key, "Library" will be one of the choices available. You should choose /Library/Logs/CrashReporter/iCamSource_<date_time>.crash.log. The crash logs should be there.
If you find crash logs, please send the most recent one to support@skjm.com and reference this post and your username.