There are a number of steps to this.
Ideally, you want a program that will automatically upload your image to the FTP settings. If you want to, you can even put streaming video on your website nowadays, and not just stills!
1) Get a webcam working -- the sort you'd use to video-chat on Skype.
2) Sign up at www.ustream.com (free).
3) Copy the "Embedding" code provided by ustream, so you can put a live video window in your website.
4) Add the code to your page.
5) Finally, follow the simple instructions on ustream to "go live."
Everything the webcam sees (and hears) is streaming to anyone who visits your website. Up to 100,000 people can watch the stream at once (providing you're broadcasting, of course). Pretty clever.
Next, when you want to extend your capabilities during streaming, have a look at superwebcam (also free), which lets you superimpose scrolling messages, graphics, etc. on the outgoing video picture. You can also use it to broadcast still pictures or video from your hard disk when you don't want to be seen personally. Ustream also has a Facebook app, so you can embed your live stream in your Facebook Profile page.
To view the live video streaming from webcam on website, a Web FLV player that supports live streaming is needed. You can check the RTMP Stream Plugin from playerdiy.com - http://www.playerdiy.com/configuration/addons/rtmp.html
This is tutorial - http://www.playerdiy.com/support/tutorial/customize-flash-video-player.html
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