Dave, following our phone Conversation I have rang Mr. computerman and he is going to see how cheap he can bump the whole system up to 80 - 120 Gigabytes. He is also loading XP Pro instead of Win98.
After I explained the system of using the Toucam, registax and winzipping it and putting it on memory stick he then saw what I was trying to achieve.
He is going to ring me Monday with the answer to what he has done to it.
This thread seems to ramble on a lot but I believe other people will get a good idea of all the steps I am going through to set up a Toucam: computer to computer. In that way they will learn how to do it too.
You know the ones: "always wanted to know, but too afraid to ask"
Well, I am on my way and almost ready to Rock'n'Roll. As long as the weather clears next week I should be able to post my first proper pic!
Thanks all for your help.