mobileh: I just noticed something. When I right click on FSTV and bring up the menu I can chose "Source Properties". Going in there brings up my "logitech" control settings for auto dimming/flip/mirror all that jazz. Once I set it, it will stay that way even through close/restart of MC(and FSTV). It might be a logitech thing. So my recommendation is ditch the webcam support for mirroring and buy a quickcam pro ;)
Not sure if that's something you noticed or if it's a logitech thing but I jsut wanted to point it out.