I've toyed around with a couple of these for use as baby cams -- mostly streaming the video feed over RTSP using VLC as the server. The video feed always works well, but I've never been able to get the audio from a usb mic to transmit using this method. The last time I googled about the topic, it didn't look like anyone else had had much success adding audio to the stream.
Does anyone know of any RaspberryPi projects that have succefully integrated audio into the video feed?