I have found the image processing toolbox for matlab, but all demos included in that toolbox expect the input to be avi videos. Does this toolbox work with webcams and/or simple images? If yes, could someone show me how?
For live video, or still images from a camera your tool of choice is the image acquisition toolbox. This, combined with the image processing toolbox you found, makes matlab quite the powerful video processing tool.
This small sample shows how to read image files into matlab matrices.