What is the problem with the new logitech sphere/orbit webcam?

The autofocus is wrong half the time, the colour is horrible, the light balance is off and it saves in WMV format in stead of AVI or MPG.

Is there a way to adjust the settings that I have not found yet?

I have looked at the logitech website and so far not managed to find any info that gets things better.

If anyone can point me in the right direction, I would be very grateful.

About focus and colour, just like any other crap camera (ie webcams or cell phones): LIGHT. You'll never get enough. Webcams work best with loads of light. Besides, maybe (can't tell you for sure) you can toggle autofocus on in the settings and do manual focus instead. If you don't change your distance to cam very much (many of us don't, since we're sitting in front of a computer), it'll be OK.

Searching google for "wmv to avi" may work. Any iPod video converter (I use videora) will do the conversion to mp4. Even Windows Movie Maker (included with, at least, WinXP) can open wmv and save in avi.

I'm pretty sure that WMV video files are supported by yuvutu for uploads. Apart from that, there's no substitute for good equipment. Webcams that support a true 640x480 resolution or better are the minimum. Much better are digital cameras that shoot video (in that same resolution and at 30fps), but seeing what is on the screen when performing can be a problem. A good camcorder is better still for focus, light sensitivity, and seeing the recording if the viewing screen can rotate toward the front.
Finally, video editing software can put a polished result on your shoots.