Question:
Is this because I have XP and they do not, or because I am using a video camera instead of a Webcam?

Answer:
The 'Webcam' option in MSN Messenger 6 will only utilize webcam's, and unfortunately will not work with firewire.  In order to use your firewire camera, you'll need to use the "Video Conference" option -- however, this is only for use with Windows XP clients, and will not work with your contact on Windows ME.

Netmeeting doesn't support Firewire cameras in Windows XP (without additional software that you have to buy), so that won't work either.

Netmeeting doesn't support Firewire cameras in Windows XP - (without additional software that you have to buy), Fortunately, there is *free* software to recognizes firewire cams and to use as driver in Netmeeting, for example .

Logitech's current line of webcam's are pretty good (and inexpensive too).  Avoid Veo webcams (simply because they have a number of Messenger issues).