From Web Solution Mart:
Fake webcam installs itself as a webcam on your PC. Unlike an actual webcam which broadcasts what it sees in front of it, fake webcam broadcasts a video.
You can simply use it with any application including Yahoo, Skype, Window Live/MSN, Gtalk, Camfrog, AIM. It even works with web apps like Justin.tv, iVideoChat, LiveVideo, UStream.tv. It virtually works with all kind of webcam applications just like an actual webcam.
You can play all type of videos including AVI, MPEG, MPG, WMV, RM, RAM, MOV, M1V, MP2, MPA, VOB, ASF, DAT, FLV, FLV2, MP4, SWF, BMP, PNG, JPG. You can even use it with multiple programs simultaneously.