You can use a variety of cameras to capture the image, anything from a personal web cam often seen perched on top of a  PC or a standard camcorder.
I use a security camera  in a waterproof housing on my chimney. Your local security company can help with the choice of camera and lens, mine was supplied with the help of
howsonsecurity.
 
  If you use anything other than a personal web cam then you need a capture card to 'digitize' the incoming video signal. A basic TV card is often enough. This can be an internal one as shown here or an external model. The more you pay the better the captured image and the more control you have over it. But you may just be paying for feature you wont use.  
  Once the capture card had grabbed the image then the PC needs some software to name the image and connect to the internet to send the file to a remote site. This means everyone can see the image without connecting to your PC directly. You can use a dial up connection or a broadband connection. I use a broadband connection and this was set up with the help of stannards a local company. I use a program called  image salsa to name and send the images. I also use movie salsa to create the time lapse movies. A program called cuteftp is used to upload the movies to the remote site at set time intervals.
 
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Once the images are sent from your PC by the  web cam software they need to be stored on a server or in other words the internet. This can be free space provided by your internet provider or can be paid for space with a web service provider. I use easily for this service.

And that's it!

 

 
           
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(c) Andrew B Armstrong 2007