I think it would be great if we could get a Flash Media Server setup.
We could stream to the server by using a program called Flash Media Encoder. It doesn't require a lot of bandwidth and the program is free to download. The quality you get with it is also pretty amazing.
Go
Here! This site is run off of a Flash Media Server. They also did something quite cool. Instead of relying on a java based chatroom, they implemented a browser-based IRC client. I believe they're hosting their own IRC server as well. This allows for an unlimited number of users and an unlimited number of rooms. Don't know if you guys know what IRC is or not.
Also another thing about the Flash Media Server...it allows more than 1 person to connect to your webcam without stealing all the bandwidth from the person serving up the video.
The downside:
1) It's not free to set this up.
2) streaming video = more bandwidth usage.
I have an idea on how to set this up, however, I've never had a client that has asked for such a detailed web application, so i've never done it.
btw my connection is 8192/512 kbps if you guys need some testing.