Just stumbled on this one from Microsoft Research, so it may not be an official release.

Digital Effects, a plug-in for MSN Messenger video chatting, produces special effects for video communication. While the plug-in loads, users can select 3-D costumes or other digital effects in a pop-up window, and those effects will be applied to a selected photograph. Users also can blur the background of photos to help protect privacy.

[ Digital Effects for MSN Messenger]

[tags]msn messenger, addon[/tags]