Officially, iChat only supports FireWire camera's. No technical reason why it cant work with USB camera's, other than Apple being greedy and wanting to shift more FireWire iSight camera's.
iChat USB cam was a popular patch to allow USB cams to work with iChat AV. But I believe you now have to pay for this..
Not only that, but drivers for Philips Toucams are kind of thin on the ground. Philips certainly dont produce them, and the popular universal Macam driver no longer works in 10.3 (In fact it causes a nasty crash I am told), and the developer is no where to be found. So who knows when that will be made 10.3 friendly.. (If you are still using 10.2 though, then the Macam driver is fine, and free!)
Last option is the 3rd party universal IOxperts driver. Which (surprise surprise) needs paying for too.. But does at least work in 10.3
It all adds up and starts to look a little pricey, So to offset the cost/agrovation, you may as well just go get a new iSight camera. Exactly what Apple want you to do..
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