Shoutbox

I decided I wanted to set up my camcorder as a webcam. I've come across a weird issue.
When I use my logitech webcam the preview in the wizard as well as what I see when I send video and do a video call are all identical.

When I use the camcorder through my TV Tuner, it isn't.
The preview shows a normal full view. But when I send video (not a video call) it shows some kind of cropped and zoomed block. I 'm not even sure how it is doing it, since the zoom is mechanical on the camcorder.
When I do a video call the video is like the preview full frame, however its of significantly less quality.

(on a side note the "video call" quality is crap compared to just sending video on both sides and enabling an audio call, but with no full screen)

I cannot figure out why Windows live messenger is cropping and zooming the video in "send" video. It doesn't do this with the logitech.
Anyone know what might be up with this or how to improve the quality of the video call?

I'll show you a comparison attached