Before you even try to get DynamIP's WEBcam feature going you should really get your video camera/capture card/driver software working properly. If you don't get your video camera working with the bundled software it is very unlikely that DynamIP will get it to work...

Select the menu Tools | WEBcam to find out whether DynamIP can properly load the video camera driver. If the window that pops up contains an error message instead of a frame, DynamIP was not able to load the driver:

Sometimes rebooting helps!