This looks like a camera incompatibility problem. More specifically, your camera does not send data in one of formats known to iPiRecorder - RGB, YUY2, i420 or MJPEG.
Sorry but we do not officially recommend Hercules dulpix HD and we do not have experience with that camera. This camera is a rare model and hard to get even in US, not to say about other countries.
If possible I would recommend that you trade in the Hercules dulpix HD cameras for Sony PlayStation3 Eye cameras. Alternatively, if you are a programmer you can try to debug the problem. If you can get Microsoft's
DirectShow AmCap sample to work with your camera and send us the resulting camera settings then we can try to update iPiRecorder with support for your camera.