It records video, so yes you can put the videos you record on youtube. It's not technically a "webcam" but you could get some sort of tri-pod or hook device for it and use it like a webcam. Although doing it this way will not allow you to start recording from your computer.

So you can't actually talk to someone live using it as a webcam then right?

No Inga. I bought my wife one for Christmas. What it does it does very well, but it's not a webcam.

This is #$%&.. Why would they not have a simple software feature to enable it as WEBCAM...

it records video but you need to connect it through an USB cable to your computer.

In order to use it as a webcam, they'd have to include a feature that would allow it to connect to the Internet and stream the video smoothly. That would significantly increase the price and size.