Yes, you can display a webcam image (live video or static image) but not with WeatherFlash itself. WeatherFlash Sales Support advised me to modify the index.htm file to include whatever I wanted but be careful to leave the flash object reference in index.htm alone.
Basically, you edit the index.htm file and insert the webcam image link whereever you like. It does work. I have inserted a live video feed from my Panasonic webcam and it looks fine.
WeatherFlash itself is a compiled flash object (.swf) and you have to use it as-is. The object is referenced in the index.htm which acts as the Home Page for the weather conditions to be displayed.
I should be able to give you a link to my WeatherFlash page in a few days. My current website is located at:http://www.sceniccityweather.com