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VirtualCamera installer automatically run the Add New Hardware Wizard.
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Press Next, Next, before windows search Plug and Play hardware.
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Select No, I want to select the hardware from a list
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Select Sound, video and game controllers type
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Be sure to use the wizard's Have Disk option. Then browse to VirtualCam.inf.
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VirtualCam.inf is in c:\program files\VirtualCamera\driver as default (Where you selected to install the VirtualCamera)
You can see the driver called VirtualCamera, press OK to install it.
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In the install progress, maybe windows want you to insert your Windows Setup CD.
After installation, you must reboot windows in order to complete install.
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If you want install VirtualCamera driver manually, here's how to do it:
Click Start, point to Settings, point to Control Panel, and then click the Add New Hardware icon.
After click Next two times, you can follow the steps list above.