While looking for baby monitor systems while my wife was pregnant, I became disheartened by the relative lack of security in almost all video-based baby monitors. Apparently anyone who picks up the same baby monitor that you have, could easily tap into your audio/video feed. Perhaps I was being paranoid, but I didn't like the idea of strangers peeking in on my sleeping baby. That's when I started researching Internet Cameras and I came across the SkyIPCam. Even though the camera is wireless, you can lock it down as securely as your own wireless network (provided you know what you're doing). Even better, since the camera is based on IP connectivity, you can view the camera from anywhere you have internet (provided you have the correct password and privileges).
Overall, the camera works great. Through a web interface, you can control the tilt and pivot of the camera by clicking on intuitive arrows. The picture quality is typical of webcam picture quality, but this camera also has infra-red lights for use in "night-vision" mode which worked great. The camera has a built-in microphone and can be connected to a speaker in order to provide two-way "intercom" type communication. However, the audio features only work on Microsoft Internet Explorer for Windows, so I was not able to use the Mac as an audio monitor (however the video still works fine on Mac).
Set-up was reasonably straightforward -- not much different than configuring a wireless network card for a laptop -- only since the camera does not have a display, you need to do some blind configuration. I also found that the wireless did not work very if the camera was moved to a different location, so put the camera where you want it, then plug it in.
Right now, our baby is rarely more than arms-length from anyone, so I haven't had a chance to use this as a baby monitor, but it works great for spying on the dogs. Turns out that they mostly sleep through the day.
The web interface supports grabbing still images and saving the locally as well as other cool features like motion/sound detection alerts and triggered events -- of those features, I've only used the still image capture to make the video below. All things considered, the Internet Cam makes for a pretty fun toy.