Jenna,
Not to fry your brain much but here goes:
1. webcam is located on a separate computer, win based. i capture a snapshot every 10 minutes. and it is uploaded to a webcam images file on the website host.
This is what you are displaying on your site.
the webcam snapshot i am uploading *based on the URL as set in WC preferences for webcam* would be used for the overlay.
The URL set in WC prefs for webcam is the same as what you are uploading in step 1. WC processes this image and applies the overlay then saves its own version of the image to the folder specified in your WC preferences On-line/Custom Web/Main/Set Save Path with the name "webcam.jpg"
Therefore, since you are uploading a webcam image outside of WC and WC is also generating its own image, you have two images on your sites' server.
So, you DO have two choices on which to display. It is up to you to modify your template to make that modification or ask the developer to help you.
For further insight, check out my website. Click on the banner below, click on "webcam" on the left side. I am displaying an image directly from my cam without the overlay; however, if you change the url from "wxwebcam.php" to "wxwebcamold.php" you can see another page with the WC overlay.
Hope this helps some.
Alan