Q) How does my web camera integrate with the web server?
A) Clever programming! No seriously, if one is detected and you enable it, it will take snap shots and serve them up to the world. For more details read this.
Q) Can I control who sees the output of my web camera?
A) Yes, though the HTTP protocol is connection orientated and not secure of itself, there is some control through IP address blocking and Setting passwords.
Q) I can't use my camera with netmeeting or other software when the web server is running.
A) This is a limit in Microsoft's Video For Windows or VFW. It's an unfortunate design decision on their part to let only one person drink from the tap at a time (as it were). If you need the use of the camera for another application, you will need to disable it in the web server until you are finished. If enough Microsoft customers insist it be changed they will do it.
Q) Can the web server allow my machine to be infected with a virus?
A) No! However since it can expand your file sharing capabilities and some files may contain viruses you should at least use safe techniques when opening new files, or scan all new files with a virus scanner.
Q) Does the web server support SSL (Secure Socket Layer), XML or CHEML or MATHML?
A) Not this version, but if the idea becomes popular we would certainly consider introducing it.