We can see these things being useful for security applications, or conferencing, or for, you know, an orgy. But we don't think consumers have ants in their pantaloons for a 360 degree webcam.
Made up of four cheap firewire webcams of 640x480 pixels each, the images are combined to make one large panorama pic. According to Computer World Magazine, this is set to be released later this year.
RingCam [Microsoft Research - Thanks Bruce!]