Yes you can use it as a web cam. I almost bought the canon but opted for the fujifilm because it had a 6x optical zoom
3.2 megapixal is great. I take outstanding photos with mine and can even blow them up to about half the size of a poster and still see no graininess, or pixelation. Most Canon, Nikon, Fujifilm digi cameras are all great.
 
$174 looks like a great deal. also when using a web cam your battery will die eventually make sure you buy a canon power supply cord. I bought some generic multi purpose adapter that eventually (after 6 mo.s) fried the circuitry in my camera and had to send it to fujifilm to be replaced.