I've researched this heavily myself, and came to the conclusion that yes it can be done. There is certain software, but the software is very involved and not worth the trouble. In reality, using a digital camera is way overkill as a webcam. Really, just buy a webcam. In fact, here's a very inxepensive but high quality camera (bought one for myself at around 8 bucks including shipping). Just make sure to read the user reviews about downloading updated driver software for it. That's why it's so cheap. It's store returns of a high quality camera that just needs an updated driver off the internet:
http://www.amazon.com/gp/product/B000P9T5SO
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