Resorted to using the 320 x 240 USB capture device, however I’ve “faked” a higher resolution by resizing the small images on the webcam page to larger than they actually are.  You will probably notice the pixelization.

Also, the file size of the time-lapse videos created by this new video capture device are much larger than before.  I’m not sure if it is because there is more detail in the room that it is observing, or if it is because it simply captures more detail than the other setup I had.  I’m looking into it, but there might not be any way to keep the videos around 5 Mb without reducing the number of frames.

EDIT:  Just dicked around with one of the time-lapse videos and found that the program is encoding the video file at 1238kbs…  a value that is ridiculously high for a webcam AVI with mediocre source video.  Not sure if I can fix it, but at least I’m figuring out why I’m having problems. 

EDIT AGAIN:  Wow this is really pissing me off.  Just for shits and giggles I converted one of the webcam videos to 128kbs and it looks just as good as the one that is coming from the program, except it is basically one-tenth the size.  But I still can’t get the F’ing webcam program to change.