On your computer you'll see the video on a 160x120 QCIF size. The image above gives you an idea of the screen comparison.
Although the window to see your images is small, when you capture an image you can then see it larger.
Click on the image to see a larger image. Due to compression, some of the resolution was lost - however, the idea of the image was to show you the size comparison of a Full Screen - the picture in the center is the dialog box that opens and shows you the video images. In this case, it's another "self-portrait" of the "Video to USB" adapter.
The dialog box has scales to adjust the brightness, contrast, hue and saturation. In addition, the dialog box has a "Capture Still Image" and a "Cancel" button.