I'm in a similar boat. I've been attempting to use Skype video chat (with the option enabled), and I just have not been capable of getting it to work. I have uninstalled the default one, installed the one from market, set the options properly, and I can receive video and send sound, but can't get either front or back camera to work.
So I've been hunting around for new alternatives, Oovoo looks alright, but it doesn't seem to have an Android app yet, my family doesn't use Google, so Google Talk is a hassle until I can get to their houses to do it for them.
Wish Skype would just work and not eat hours of battery time in a few minutes.
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