That is precisely what the software does. It allows the person to take existing video, and to attach commands or bookmarks to certain actions or segments. For example, the scammer can take video of a porn actress and can set parts of the video (for example undressing, lifting up her shirt), to show at the press of a button. Then when the victim asks "her" to perform one of these things, the scammer can simply press a few buttons, and make it happen. We regularly encounter victims who are absolutely convinced they were talking to the real Raven Riley because "she" responded to their requests in webcam chat.
As for the use of these photos? Just doing some searches and following them where they led me, I came up with around a dozen more photos, and no fewer than 50 fake profiles using this man's photos, all that appear to be the work of African scammers (some have been traced to Nigeria or Ghana).
A few more examples:
http://www.facebook.com/frank.dimino.39http://polishdating.us/en/users/john1955/http://www.myspace.com/560599011http://www.facebook.com/tommy.robinson.3344more here at scamwarners:
http://www.scamwarners.com/forum/viewtopic.php?f=13&t=20903&p=77282 have learned quite a bit with talking to him every day, e-mails in the morning, talking every night, skyping, and talking day and night on msn since he has been 'abroad',
I hope that you have cut off contact with this person now that you know he is a scammer. He does have real information about you, and it is not advisable to play with scammers who have your real life information. Playing with scammmers is called scambaiting, and it is something we do over at our sister site, 419eater -- but we only do it safely, meaning that the scammer does not have any of our real information.
A couple of edits to add:
Chances are he did not delete his profile. If the site is legitimate, his profile was probably removed for scamming others.
Also, please post the email address this scammer used, and if he sent you emails, post the early ones, as these will most likely be scripts that will be reused.