Webcam streaming?

Hi,
a while ago I tried to make an interactive internet-based project. Everything worked except I ended up using VLC to stream from webcam as I didn't find suitable alternatives and it had latency of ~2-3s, which is a bit un-interactive.
Later I found this
http://www.orbduino.com/index.htm
and (when it works) the performance seems to be good, which rise a question - how to do webcam streaming properly?
Also I've looked at IP cameras, but they seem to have quite limited client amount.