Many Webcam applications exist for Linux. If you want to play with self-portraits, there's Cheese. If you want to set up a security system in your office, there's Motion. But, if you just want to have some fun, give HasciiCam a try.

HasciiCam does for Webcams what aalib+mplayer does for video files. It renders your live video directly into ASCII. It also has a feature to create a live Web feed of your ASCII video for the whole world to see! HasciiCam might not be the most practical application to use with your Webcam, but if you ever have been fascinated with ASCII art, it might be the most fun. It's most likely packaged with your favorite distro, but if not, the source is available from its Web site: http://dyne.org/software/hasciicam.