I found this, regarding the Dynex camera, and so I would think that trying to use it would be a waste of time. I believe there were other sites complaining about the company's lack of OS X support also.
Note, in the story I linked to above, some of the comments and readers were not happy at all with this product, so be cautious of some of the language used there if you care to read them. The actual story looks clean though. Of course you could look for more stories/reports on Google, as I said there were others around.
If the company offers no support and no current drivers, then it is a lost cause by the looks of it. Return it and search for an alternative. Most webcams that I see are branded as Windows compatible, but make no mention of being OS X compatible. Call up the closest Apple Store and ask them what camera they recommend. Of course, you could always look for a used FireWire iSight camera, a retired Apple accessory released some years ago. Works great with the G4 Macs.
If you could find a Mac-compatible webcam, I wouldn't worry about it being Skype-compatible. It should "just work", as Apple says ;-).
I have a mac mini with OS X 10.4.11 and am having a hard time finding a web cam that has compatibility. Amazon says Logtech QuickCam Pro 4000 will work but I can't find if that is true for my system. I need one that will work with Skype as my daughter has a PC with that and wants me to get something for us to be able to use. I got the only one at Best Buy, a Dynex , that said on the box it would work with mac but it's not true, will not work. Any quick answers or a site to find my answer?