Michael Scherotter has created a Silverlight 4 OOB app that captures webcam pics and saves them as JPEG files.
Source: Synergist
Knowing that Silverlight supports webcams for photos and video, I decided to build a quick Silverlight 4 Out-of-Browser application that would enable her webcam to take photos and save them to her system. In about an hour I was able to create this application to capture webcam photos and save them as JPEG files.