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The first time you use Netmeeting you will be asked to input some basic personal information. This information is used if logged into a directory. Remember do not give any personal information away, it will accepts anything as an email address as long as there is an @ in it. It will also run an audio test to calibrate your speakers and microphone.
Once Netmeeting is open you are ready to receive calls. It is important to realize that Netmeeting can be used to share files, programs and all forms of data. Therefore you should make sure none of these options is enabled. Go to the Tool menu and check Sharing and Remote Desktop are not enabled.
Next go to Tools.....Options. Here you have 4 Tabs. General, Security, Audio And Video.

General- Here you can change your personal information that is shared on the directory. It is also where you set the directory you wish to log into. All directories have a unique address which begin with ils, an example is http://ils.netmeeting.co.uk . You may wish to find other servers, most ISP's run their own server and some communities do also. There is a list of ILS directories here http://www.videofrog.com/ils/

Security- allows you to accept only secure or make only secure calls. Security is a personal choice, most chatters don't use it but business users may.

Audio- This allows you to enable full duplex sound, as in you can talk and hear at same time, like a telephone) It also lets you run the setup again to check sound and recording levels.

Video- This lets you chose the quality and size of the image you send. The higher the quality and larger the picture the slower the sharing. Many video problems are solved by going in to the Web cam's own software and reducing the frame refresh rate to between 2-5 for the average 56k modem user.

There is some great Netmeeting help here, http://www.help.com
Once you have followed the installation instructions you received with your web cam you are ready to use. Popular choices for chatting with Web cams are PalTalk andNetmeeting.
Paltalk ( http://www.paltalk.com  ) is a messenger that supports web cam and voice chat. All parties who want to chat must have PalTalk installed.
Netmeeting ( netmeeting/ ) is similar and many people have it on their computers already. 

Netmeeting allows you to call someone via their IP address (start......run......winipcfg)  (cant get it? head to my ip page, and grab one of our small TINY downloads that tell you your ip.. 4kb each! ) and also via one of the many directories you can chose to log into. There are rooms In Yahoo that swap IP addresses to Netmeet but beware, your IP is what hackers are keenest to find.

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