Hello friends,
Can I know the location or other details of the person I am chatiing with on Yahoo messenger or visa versa? Do we have privacy on Yahoo webcam while we chat using it?

NO, you CANNOT be 100% sure where the person you are chatting with is from.
As for Webcam, you can limit it to certain users. Best to set it to ask your permission to view.

Once the data packets are sent out over the Net there is a possibility they can be intercepted. The possibility is very remote, but it exists.

There arew programs like geoip,that can give an approximate radius of the ip ,but not an 100% exact.