I was at Walmart yesterday - cruising the technology aisle, as I do often. I always make it a point to checkout different retailers to see what, if any, GNU/Linux compatible products they have for sale. This time I was looking through the USB webcams for one that said "GNU/Linux" under the system requirements.
So I didn't find any boxes marked "Works with Linux", but then I saw this webcam (the Logitech E1000) for only $16.88. So then I though to myself, I could buy this webcam, take it home and test it with GNU/Linux, and if it doesn't work, I'll just bring it back and exchange it for another one to try until I find one that works. This is the beauty of shopping at Walmart, lol, they guarantee your satisfaction - even if it means you will swap out one product for another a few times.
Well so I bought the Logitech E1000 USB webcam, I took it home, plugged it in to my Dell Inspiron 530n running Ubuntu 8.10, installed cheese (sudo apt-get install cheese), and guess what? The camera works like a champ!
The lsusb command output for this particular webcam is:
ID 046d:08af Logitech, Inc. QuickCam Easy/Cool
The uname -r command output from my Dell Inspiron 530n with Ubuntu 8.10:
2.6.27-11-generic
Here are some webcam enabled programs that worked for me with this USB webcam.
Cheese 2.24.2 (simple webcam program)
ekiga 2.0.12 (VOIP client)
Camera Monitor 0.2 (Simple Program to Show if the Webcam is on)
gqcam 0.9.1 using this command to make it work:
LD_PRELOAD=/usr/lib/libv4l/v4l1compat.so gqcam -v /dev/video0
camorama 0.19 using this command to make it work:
LD_PRELOAD=/usr/lib/libv4l/v4l1compat.so camorama
aMSN 0.97.2 (07/25/2008)
Kopete version 0.60.4 using this command to make it work:
LD_PRELOAD=/usr/lib/libv4l/v4l1compat.so kopete
Skype 2.0.0.72 using this command to make it work:
LD_PRELOAD=/usr/lib/libv4l/v4l1compat.so skype
per http://ubuntuforums.org/archive/index.php/t-997807.html
Here's a sample pic from the webcam:

Also checkout the links below for more information on getting your USB Webcam up and running in Linux:
http://www.linux.com/base/ldp/howto/Webcam-HOWTO/framegrabbers.html
https://help.ubuntu.com/community/Webcam
http://ubuntuforums.org/showthread.php?p=6910868
And for the Logitech webcam users that are looking for some GNU/Linux love:
http://forums.logitech.com/
http://www.quickcamteam.net