I agree with Harris - although I must admit your choice of cadence for the arpeggiated piece is a bit catchy! Perhaps some Caribbean influence there ...
Your muting on the Paganini piece was at times very good - usually when you did mute it was the low E that got the treatment. With more practice I bet you would get it all.
As for the recording quality, it is unfortunate, but it is entirely consistent with my experience using a webcam. I don't think I ever even posted a webcam-recorded lesson as a result of the warble I heard from the audio. Even my cheap digital cameras do better than my webcams (which I don't even plug in anymore). But live and learn, right? See you in lesson 6!