I have a Macally Sirius USB2.0 camera connected to a new model Mac Mini (there is no built-in camera) running OS10.5. I am running iCamsource 1.3.6 (but I also had this problem with the last version). When I turn iCamsource on, it seems to take a still frame picture, then freeze. A minute or so later, it disconnects. A minute or so after that, it comes back on again with another frozen picture, and then the cycle repeats endlessly. On the iPhone, if iCS is in the "on" mode of the cycle, I get the still image, then when it turns off, I get a source disconnected message. It doesn't reconnect when iCS goes back into the on mode, but turning iCam off and then back on gets it back (again, only for a few seconds with a frozen image).
I have used two other Mac laptops with built-in cameras without any problems.
I also noticed that on the Mini, when the iCS software is running, but stopped, iChat won't recognize the camera. I have to quit iCS to get iChat to work, but then it works perfectly, including motion. On the laptops, stopping iCS is sufficient to get iChat to work properly.
Clearly there is some incompatibility or settings problem here, but I can't figure out what to look for to explain this weird behavior. Any ideas?