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A few questions.
Is this a laptop, or a desktop? Everything you are connecting to the PC (mouse, keyboard, camera, usb wireless) are all USB connections? Do you have a USB splitter (a device plugged into your USB connection on the PC that splits it into 2 or more USB connections to plug in more devices)?
USB requires power. If you have a USB splitter you will want it to have its own power supply, but even that is not a total resolution.
My suggestion, get rid of the amount of USB devices on your PC. If it is a desktop, get a PCI wireless card. If a laptop, get PCMCIA wireless card (assuming you have ports to plug it in).
Now, what throws me off, is towards the end you say only one person can connect to the router at a time. The first issues you are having are obviously USB problems. Resolve those first. You need to be able to plug your camera in at the same time as mouse/keyboard, and I recommend getting a solid state wireless card, not a USB one.
After that is resolved, then troubleshoot the router. Check it's configuration and make sure it is set to allow multiple connections at a time.
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