There's a long standing post on Tink's blog about the lack of support for OSX by Flash Media Encoder (FME). While I initially had little luck getting FME to recognize any connected camera in Parallels I have since noticed (in a proper DOH moment) that USB devices often need enabling separately under Parallels.The quick and easy fix to get FME running under Parallels is therefore to simply click the little USB icon (see image) and choose the camera you wish to use (for example 'Built-in iSight). Once you've done that you can use your iSight or other chosen camera under Parallels with FME.
It's pretty cool, it's a commercial implementation of WINE (http://www.winehq.org/).
It allows you to install windows applications without requiring windows at all.
They (WINE HQ) say this about themselves:
"Wine is an Open Source implementation of the Windows API on top of X, OpenGL, and Unix.
Think of Wine as a compatibility layer for running Windows programs. Wine does not require Microsoft Windows, as it is a completely free alternative implementation of the Windows API consisting of 100% non-Microsoft code, however Wine can optionally use native Windows DLLs if they are available. Wine provides both a development toolkit for porting Windows source code to Unix as well as a program loader, allowing many unmodified Windows programs to run on x86-based Unixes, including Linux, FreeBSD, Mac OS X, and Solaris."
I've never tried it though so I can't vouch for it.