Yeah, that would work Neil, but for a couple of quid more, you can get the same USB one I got. I bought a second kit for my father-in-law for this birthday, and he's really impressed with it as well.
With the software it comes with, you can only get it to record constantly. With WebcamXP which I'm running, the free version again can only record permanently, but you can set it to a schedule, so I have to stop/start recording every 6 hours. If you pay for the Pro version (£50) you can set it to only record when it detects a motion. It will also e-mail you a picture when it detects a motion as well.