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The WIP330 will work with certain network cameras to allow you to see the live image on the WIP330 screen.
Yes, this is true - but so far as I am aware the only netcam it works with is the Linksys WVC54GC. It uses a specific Active X control to display the image via Windows Media Player. Presumably this has been shoe horned into the WIP330 firmware.
However, it does work well within the limitations of the small WIP330 screen, particularly with later firmware versions where the WMP screen is less obtrusive.
To give an idea of what to expect you can see my own WVC54GC security camera here:
http://87.243.201.15 port: 1024
How to set it up? Two ways...
1 Use the phone's GUI and your computer's web browser navigate to the Administration/Web Cam and Web Url and enter the details there - not forgetting to specify the port used (1024 in this case).
2. On the WIP330 navigate to Menu/Webcam then Options and Add and enter the details as above.