Here is the app, its heavily inspired by Apple's photobooth, therefore you need a webcam and Flash 10 to use it. It implements almost all of the features of photobooth, including background removal and video effects. I've also included export to both Facebook and Flickr

Here are some of my thoughts after I wrote this

http://tharavaad.wordpress.com

If it generates enough interest, I will clean up the code and opensource it.