The meta refresh doesn't work all that well because usually the image is cached, either by the browser that is viewing the page or by the Proxy server (if there is one).
You can add more meta data to try and stop the page from being cached, but this doesn't usually stop the image itself from being cached.
You really need something a bit more beefy to push the image out to the browser. I ran a very dull Webcam in my office a year or so back, and I used a free Java applet called AnfyCam:
http://www.anfyteam.com/ajdownl2.html
Anfy is a whole set of Java applets, so you'll have to download the lot to get the camera bit. If you want to email me directly about this, feel free.
Kammer x