First of all, to lessen the flicker, if you can turn auto-exposure off with your camera, do that. The next thing would be to focus manually as well. The auto-focus on your camera has left everything slightly out of focus. I've never used a life cam before, nor do I know much about it, it may just turn out to not be a very good camera for brickfilming. Before giving up all hope, take a look in your camera settings and see if you can switch to manual focus and exposure. What software are you using for animation? The settings might also be found somewhere in that program as well.
I hope that was a little bit of help, and hopefully something can be done to improve your camera's quality. You can still make entertaining films with a crappy camera, though I understand that you want to get the best quality possible.
Welcome to bricksinmotion by the way,
- Yo-Blob
Blast from the Past? Or Beleaguered Mediocrity from the Past?