This candid canine has a camera tucked inside its stuffing. See the magenta reflection off its nose? That's the camera lens. The plushcam has bite (USB interface) but no bark (lacks a microphone attachment). It runs only on PCs operating Windows 98/2000/XP. I found the SunSonny device at an iCare store along Causeway Bay in Hong Kong. It'll run you $256 Hong Kong dollars which works out to about $33 U.S. I couldn't make out all the specs but I think it runs from 160x120 up to 640x480 where it tops out.

Mageekstore seems to have a similar PC/USB/Webcam device but for double the price, although it is a more careful breed rendering.