Try downloading the latest version of Windows Media Player. That's what I did. I as well was having this problem for a couple hours, til i fixed it.
I downloaded the DivX latest version, and it still did crap because it isn't a proper file to be playing in DivX. So, I went to the next step, and updated my Windows Media Player, which, was already the newest one I had, because it came with Windows XP.
So, after you get the latest windows media player, simply copy the URL for the camera that you want to watch, and paste it into the "Address" thing in internet explorer....you know, where u type in all the
www.a;gabb.com and stuff like that...(no....thats not a real webpage)....then the live cam will open in the Internet's Windows Media Player, and you can maximize the window and move it around and adjust and all that fancy stuff.
Hope it helps.