From the website:

Fix8 is a free interactive communication tool that animates your expressions and movements in real-time. All you need is your PC, a webcam, and a dash of creativity. Use a wide mix of creative tools including avatars, creative "dress-up" accessories, flash animation and more to create your own world of videos to upload to your personal blog or post to video sharing sites. fix8 isn't just a video creation tool - it's a communication tool that allows you to dress yourself up with the full offering of avatars and creative accessories for streaming IM video chat.