VortexBoy wrote: ... I know this may sound very elementary but there was no documentation with my Mac when I bought it new (except a thin flimsy pamphlet with very baic stuff in it)...
There should have been a seventy page booklet in the box with your new iMac. If yours is the latest version, clicking here will download it if you cannot find the physical copy. If yours is an older iMac model, you can search for the correct manual from the iNtel iMac Support Page > "Manuals" link.
After that, Mac 101 is a great web-based information source. If you don't need general help, take a look here for specifics about each application of interest.
VortexBoy wrote: ... and the help menu comes up with nothing at all when I search for web cam, webcam or isight....
If your posted info is correct that you are running Mac OS X (10.7.3), you should be able to get started by using your Mac's Finder > Help menu command. Searching for "camera" (without quotation marks) on my 10.7.3 Mac returns Mac's Help article entitled "Use your Mac’s built-in camera." This is the web version of the same help.
Other apps, like QuickTime Player (the Lion QT 10.x version), and iMovie (part of iLife that came with your Mac) can also use your iMac's camera.
iMovie Help or this web page version of the same help will explain how to "Record video directly into iMovie".
Use QTX Player's File > New Movie Recording menu command to record video with it. You can configure size and quality of the recorded material by using QTX's preferences as shown in this image:

VortexBoy wrote: ... Where do I go to learn about how to use the built-in camera/web cam as a camera and also as a web cam? ...
Different apps do not all work the same. For function-specific help, search Help in separate camera applications; i.e., after you launch Photo Booth, iChat, QTX, iChat, etc., use the individual app's Help menu command to search for more info on the camera or what you want to do.
This article offers great basic tips about how to position, light, and use built-in cameras. Although its subject shows it was written for iMacs, it is equally applicable to other reader's inbuilt Apple cameras, too.
For more specialized functions than those offered by the camera software already included with your Mac, you can search the Mac App Store for other apps that can use your camera.
For webcam help with iChat, use Apple's iChat Support page if you need more help that that provided in the dialog boxes and iChat > Help on your Mac.
To use your camera with FaceTime, search your Mac's FaceTime > Help or these web versions of the same Help topics that should be available on your Mac.
Skype or other third party webcam apps will offer their own Help menus of varying quality. In additon to these app Help services, some apps offer comprehensive Support services via their web page. If you decide to add Skype to your Mac, you can click here to review the excellent Skype Support pages.
If you need to start a new topic for specific questions after you get started, give as much detail about what you want to do and what you may have already tried unsuccessfully. We will offer specific suggestions based on the details you provide.
Enjoy your new Mac!
EZ Jim
Message was edited by: EZ Jim
Mac OSX 10.7.3