I am looking for a video conferencing solution on the Web that has
good video and voice quality. Preferably inexpensive. Other functions
are not important. Also it must be easy to set up with no expensive
and fancy equipment...just mic and web cam. If possible it can be
incorporated onto my website.

I've heard that some instant messagers have that but they are not too good.
Any suggestions?

Create custom conferencing solutions to enhance service offerings. 
Integrate conferencing functionality into existing Web pages. 
Extend the features of NetMeeting. 

Video and Audio Conferencing 
NetMeeting's audio and video conferencing features let you communicate
with anyone on the Internet.
 
Chat 
Chat lets you conduct real-time conversations via text, with as many
people as you like.
 
Internet Directory 
The Microsoft Internet Directory is a Web site provided and maintained
by Microsoft to locate people to call on the Internet.
 
File Transfer 
File transfer lets you send one or more files in the background during
a NetMeeting conference.
 
Program Sharing 
NetMeeting's Program Sharing feature lets you flexibly share multiple
programs during a conference and retain greater control over the way
they're used.
 
Remote Desktop Sharing 
Remote Desktop Sharing lets you operate a computer from a remote location. 
 
Security 
NetMeeting uses three types of security measures to protect your privacy. 
 
Advanced Calling 
This feature gives you the flexibility to send a mail message to a
NetMeeting user or initiate a NetMeeting call directly from your mail
address book.
 
Whiteboard 
The whiteboard lets you collaborate in real time with others via
graphic information.
 
http://www.microsoft.com/windows/NetMeeting/default.ASP

use skype  this is best solution currently available in world.

to get to skype. in google search type "skype download" install it and
have skype id.