The Capture Webcam engine will use wdm/direct show based devices, which normally means a local connected (usb) webcam. If your ip camera is able to produce mjpeg (most cameras are able to do this) you can use a small and free direct show filter written by Roman Ryltsov to turn you ip device into a direct show device. You will get more info and the download option on Roman Ryltsov blog: http://alax.info/blog/1216