Dropcam uses AES-256 encryption between the camera and their servers. This type of encryption is used to encrypt information transferred over the Internet and is used by financial institutions, VPN connections, etc. Dropcam is doing what it can to ensure that the communication between you and dropcam stays that way.
Having a secure wireless IP camera in my house for the last few weeks was both enjoyable and informative. Using the built in two-way communication I was able to mess with my dogs and watch them go crazy as I called their names and they tried to figure out where I was. It was informative to see the comings and goings in our house while the wife and I were away. We do not have small children, our kids are almost all grown and ready to leave the nest, so for me the dropcam wireless IP camera came in as more of a security device but it can be used to monitor just about anything. Night vision performance was decent and the LEDs were able to illuminate most of our living room.
Installation and setup were a snap and it took about 5 minutes to complete. Just follow the instructions on screen and yo are all set. Overall my experience with Dropcam was pleasant. I was able to watch the house when I wanted to. The bottom line is it just works.