Woohoo! My sister and I just had our first video "conference"! It's the first time I've ever used Skype at all, but she is an old hand at it. However, it *was* the first time for both of us to try our cameras.
My camera is built in to this Asus Eee PC; my sis just got a webcam a couple days ago as a part of a special deal for a headset.
Still photographs are one thing, and phone calls are fine; but seeing someone talking to you is almost as good as being in person. :-) I also got to see doggies and one of their cats. Fun!