I'm not sure if you still need help with this. I found this: A) Using the list of trusted peripherals for the Pi was the first clue: I had a shitty webcam with no name, and it just didn't work. I ended up using microsoft HD3000.
B) A powered USB hub was needed and many problems were fixed.
In the default motion.conf file, you will notice that the default resolution is something like 352x288. It runs on 640, but puts a lot of stress on the small pi. In the end, I turned the resolution back to default until I had all the other parts, and then turned it back on when I was ready to sit down and capture the video.
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