I loaded this little app immediately. I have not tride it yet with a friend, but webcam test works and the picture is great!
It was only a matter of time: Skype can now be used (by some people) as a video phone. The Spontania video4skype plug-in offers high quality full-screen video, videoconferencing using the user's Skype contact list, and video P2P capabilities." By Leigh Phillips, Digital Media Europe, May 30, 2005 [Refer][Research][Reflect]
[OLDaily]
To your point about Video on Skype...more and more of these types of solutions are coming up these days. I have a freind who just tried an Alpha or pre beta of a product called vSkype (www.vskype.com). He was very impressed with the quality. I guess they didn't launch yet but there is a waiting list. Should be interesting to try it out. They claim they have sharing which is also a great thing to have on Skype.
Hans