I use Paint Shop Pro v7. I've been using this since v4 (when it was still shareware). Even though it is now "purchase ware", it is not very expensive. I use it to pick up pictures from my "real" digital camera, and have to admit that I have never tried to connect to my PC camera. However it should work.
Please note that if you tried the software that came with your PC camera and you were not happy with the quality of the picture, then the problem is likely the camera, not the software. Most PC cameras are just not up to the levels most of us expect, frankly.
I see also that you were not happy with the "capatability of the camera's s/w with win2000". We all assume that you went to the manufacturer to see if they have a W2k patch?