Its a webcam, spiffy, yes?
Generally used for business conferences or other things over the interenet when the people who are conferencing are not able to be in the same room together.
Guy 2: "Yea right, you're just jerkin' your chicken for Stacy 'cause you're so lazy to go over and sex her up."
Guy 1: "What the hell man, what the hell?!"
Guy 2: "You know its true!"