Mikomi DC 7120 webcam works!
Fellow Linux users in case you are looking to buy webcam here is one that worked:
Mikomi DC-7120 5MP Mic and Zoom Webcam works straight out-of-the-box with Ubuntu 8.1. I have tried with Ekiga and Skype. It appears as "USB2.0 1.3MP UVC Camera (hw:Camera,0).