|According to https://code.google.com/p/jpegcam/ , development on the .js file needed by this example ended in 2010. |
Why? Probably because html5 made Flash (at least any use of Flash to access the camera) obsolete.
Try http://www.html5rocks.com/en/tutorials/getusermedia/intro/ for a basic introduction. Not all browsers support the camera in exactly the same way, but the polyfill is not too difficult, and the results are far superior to anything with Flash.