Image quality is pretty good as is the sound quality. The software that comes with it could be a bit better though. It's pretty basic and there's no option to export your videos once they have been recorded / edited.
Works a treat with games like Singstar and Little Big Planet, not tried with any motion capturing games yet so wouldn't know about those.
If you want a decent camera / mic combo for the PS3, then original is the only way to go.
I just had to get the ps3 eye as i looked all over for infomation about it, and it just amazed me, the software for the ps3 is a simple picture,video and sound recorder but then there are loads of funny effects to go with it, also you buy a game called operation creature which is quite good and many other's which simply you'l see your self transparantly in the background of the screen.
It just has to be bought for ps3 singstar aswell , you can't go wrong as you are able to record yourself on singstar , you can watch your video's of you and your friends singing and save them aswell, it brings great laughs i know when im singing with my friends but it's has to bought.