I"m running out of ideas... maybe reinstall DirectX 9c,
check on newer USB drivers for your motherboard. I assume
you had the updated Via chipset driver?
There is some less than clever software in this world.
When it comes to imaging stuff on the screen, double
buffering is a popular method. Good software would
throw frames away, if the processor was not able to
keep up with the flow of data. The user would notice
the dropped frames and generally crappy performance, but
at least there would be no crashes. It could be that
in this case, the software assumes an "infinite" processor,
and the software doesn't know how to handle "falling behind".
Since the problem happens so quickly, it is probably not a
memory leak. You can watch memory consumption in the Task
Manager.
If there was a spare disk available, then a clean reinstall
of the OS, with minimal software installed on the disk,
would be a way to test the configuration with fewer pieces
of interfering software being present. It could just be the
sheer number of bloated tasks running on the machine (like
AV software), that leaves no processing power left for the
webcam.
Just a theory,
Paul