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Merge two video sources into one?

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Hi,

I'm looking for a way to take two video sources (namely, two webcams) and mix them into one picture-in-picture live stream, which I can then use as a source of its own.

To put it another way, I want to Skype — and I want the person on the other end to be able to see both my cameras at once. On the Windows side, there's ManyCam which does exactly what I'm looking for and more (for free, too), but their Mac version is abysmal.

I've found another program, CamCamX which does what I'm looking for if I shell out $60.

Surely there is another way. Any ideas?

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