It seems a bit pointless using a cheap A/V USB device and connecting the TV out from the Flip to use as a webcam. You're not going to get a HD signal from it, you may as well just buy a cheap webcam that will do the same thing.
This seems rather unlikely to work. I just tried pluging in the composite output from the Flip MinoHD to my screen, and as soon as you do that the Flip switches to playback mode. It will not show the live picture when plugged in, composite nor USB.
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