I got mine worked flawlessly here is how:
1. Uninstall any and every version of skype on your phone.
2. Download and install the modded version of skype from here (Credit to
theos0o) :
xda-developers - View Single Post - Skype 2.1.0.46 (v11) / fixes, extra features & more!
3. Sign in to your skype and hit the menu softkey then settings and tick the "Enable video calling" box. Your skype should log out and sign in again.
4. Once your signed in again and on the main page hit menu again and now to advanced settings.
5. Checkmark the option that says "Use valid preview surface"
6. Back out of there and enjoy.