Can i use my digital video camera for my webcam?

Yes you can. They are more expensive, so you don't buy one just for a web cam, but if you have it, you can definitely use it.

If you have a video capture card (internal or external) you may use any camera as a webcam. You may, however, try to use the digital output of your camera via the USB or Firewire interface.
If you succeed, you better buy a tripod to hold your camera.

How to try digital streaming connection:
Connect the camera to the computer. Turn the camera ON. Put it in RECORD mode but don't press the RECORD button, leave it in PAUSE mode. Now run your favourite software for video-chatting software (Yahoo, MSN, etc). Search for the webcam configuration - there should be a list of video capturing devices. With some luck, you will see your camera in the list - choose it and you're OK.

Yes it's possible to use a video cam as a webcam, BUT, the big problem you may encounter is the resolution. A webcam will normally give a resolution of about 480 x 320 , your video camera 1024 x 768. The higher definition will take longer to transmit, so your friend watching won't get very smooth movement to watch.

Usually yes.
1. First install the software (USB driver or firewire driver) come with the camcorder.
2. Then install the Webcam software such as yahoo messenger.
3. Connect your camcorder with computer via USB or firewire cable, turn on camcorder.
4. Start Webcam software, it should detect all available webcam and ask you to pick one. You pick your camcorder.

Certainly the actual procedures depend on you camcorder and webcam software.