CamTrack by digitalpeers.com is a very cool app which I have been using for the last couple of weeks. Basically, it allows you to apply all sorts of very funky digital effects to your webcam video. The possibilities are endless, you have the choice of three basic filters, such as edge detection, but these filters can be used in any combination and can be further enhanced by adjusting your camera controls - such as saturation, brightness, contrast etc. On top of this, you can add overlay graphics such as fire, clouds, reflections etc.. Unlike other video enhancement applications, CamTrack, makes every effect count, and each effect has it's own cool little quirk.. All in all, a great product, well worth a look..
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