Us on Team 20 used a D-Link network camera this year, but that's not something that most teams do. Most typically use an Axis webcam or use the Microsoft Kinect (which was included in the 2012 Kit of Parts).
As far as setting up vision targeting, there are multiple ways to go about getting it up and running, ranging from 341's incredible 2012 vision system to the WPILib examples for vision on the cRIO, to a basic RoboRealm script from an on-board computer.
Which approach is best for you depends solely on how comfortable your team is with the given technology you'd like to implement.
Relevant Vision/Camera Documentation:
EDIT: Here's the links to the official, Kit of Parts documentation on the
Axis M1011 and
Axis 206 Cameras.