Chris this is a great resource. Thanks for sharing. No problems creating the png file on the server, however I am trying to store the image directly in a Notes document. I haven't got there yet!
Once you have the image file on the server you can get hold of the file from the path and then embed it into a Rich Text field of your notes document, e.g.
var rtitem:NotesRichTextItem = doc.createRichTextItem("Body");
rtitem.embedObject(NotesEmbeddedObject.EMBED_ATTACHMENT, "", "c:\temp\webcam.png", null);
doc.save();