If I send my web cam to my friend or my friend send me his web cam, does the Yahoo server capture the web cam every time or anytime?
npg - what video chat software are the two of you using? You're referring to Yahoo so I assume you're referring to Yahoo Messenger? You can be sure that Yahoo doesn't have the capacity or resources to capture or log everyone's chat sessions, let alone video sessions, so no - Yahoo servers are not actively capturing and logging your video chat sessions.
With that said, if you're concerned about security you should be aware that the traffic does at least go through a 3rd party server - it isn't direct from your PC to your friend's PC. If you want the communication to be more secure you might want to look into Peer-to-Peer video chat software.
but the video images are going through server so, server can records each conversation without the knowlegde of user. whatever communication you adopt the messages goes through server so server will be active 24/7, and obviously yahoo server can store images... this is my opinion...i hvnt seen but its ironical