There is a free software program that you can download at
http://www.animateclay.com/ that really simplifies the entire process.
Another REALLY simple program that I use is the one that comes in the kit
that is in several of the art supply catalogs (mine came from either United
Art & Education or Sax) -you can see it at
http://www.tech4learning.com/claykit/ (they have a website by the same name
where you can see samples done with their software). They also have lesson
plans AND a 30 day free trial. The kit runs under $50. As for cameras, I use
my son's webcam - it cost around $25 and works great. Images are downloaded
instantly.