I just installed a free program called Camtwist, which lets you create all kinds of effects on top of a live Web stream. So I made this video on Ustream.tv of me testing the features out.

Note: You have to hav a Mac to use Camtwist, and as far as I know, there is no PC version or tool that does something similar. If you have any questions about how to setup a live stream or using Camtwist, just ask in the forum or chat or group call!