I have a canon 3.2 mp digital camera. Can it be used as a webcam?

What model is it? Just doing a search on Canon 3.2 in yahoo brings up a couple of models so not sure which one you have.

http://www.usa.canon.com/consumer/contro...
Go there find your camera click on it and see the specs.

I have a Powershot A75, which is 3 megapixel, and it cannot. Very few digital cameras can be used this way. For one thing, the camera will go to sleep mode if it isn't taking pictures, and also because a webcam signal uses a very small picture, less than half a megapixel, so the digital camera is way overkill. There are good webcams for around $20 out there, just get one of those.