I think that there is a bug in the latest version of Skype.
I have two webcams, one built into my laptop screen, which doesn't work, and a Logitech Sphere (Orbit in the Americas) AF. The Logitech device works great most of the time, although it doesn't have the auto-zoom and face tracking features it has on Windows.
My problem is that when the computer starts up, Kubuntu (7.10) seems to assign video0 and video1 to the devices at random, and so while I may have set video0 for my webcam in the video settings, the next time I restart this may refer to the non-functioning internal webcam. Is this a problem that can be resolved by Skype or is this a problem with detecting webcams in Ubuntu?
Thanks for the video feature though, it's great to not have to reboot to Windows, although the auto-zoom / face tracking would be good too (although maybe these are features of the UVC driver and not Skype?)
Tom