Greggie Boy

Iwould appreciate suggestion on what to buy oreven what to look for. Here the deal.
I want a video camera that will take still photos also or a digital camera that will also take videos. If it can be used as a webcam that would be a plus. It is a gift for the grand kids to use on my pc. I'm in Canada so Cdn links perferred.
I'm really not tooconcerned about the price as long as it performs well.

My pc has both USB & Firewire if that makes a difference.

Thanks in advance