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You need to find a driver for it, but it ought to work (similar to the PS3 controllers). I was looking into this possibility myself so I'd have a webcam that could work on my PC and skype, but then also have it be useful for the PS3.

With the Xbox 360 camera, you'd need a driver just like above. I found this link, looks like it'd be easier to get working than the PSeye or PS3 controllers.

http://support.microsoft.com/kb/925384