hhmm, interesting thought Paul! The capture program I use is the 'QuickCapture' feature of the Logitech Quickcam suite that comes with the camera. I'm not doing any compressing of the avi, but thats not say the program isn't automatically...something to look into!
I've tried using K3CCDtools to capture with but had problems with saving the avi's on the laptop - the file is written but it contains no data... I wonder if thats due to the laptop having trouble with the larger (100meg+) files that it should be creating... laptop is a 1.4Ghz Centrino with 512 RAM.....
I'll be looking into it now thats for sure!!
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