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) It's worthwhile going to a large computer store (Comp USA, Compusmart, Future Shop, Best Buy, or whatever's large and near you) to have a look, as they tend to have one of each webcam set up and connected to a computer, so you can compare image quality.
Some of the more expensive models do fancy things, like tracking (the camera follows you around the room) and have nice zooms, which may be useful, depending on your intended use.
The web's biggest companies, and arguably the best products, are almost always free.
From Facebook to Google, Twitter and Instagram - free does not mean cheap.
First off, start by adding in images or screen shots to each of your steps to help users see what you are explaining.
Additionally, adding in some more info about where to get the programs and what kinds of cameras someone should by would be useful.
I've included a photo of the Creative Web Cam Vista Plus, which is a really cheap, very basic webcam, which is Mac and PC compatible.