When Skype released it’s new version of their popular software to version 5.3 people (also yours truly) found it not to work as it should. Especially when it came to video-chatting and other bizarre bugs. I have uploaded the previous version 5.2 and recommend downgrading Skype if you experience any of the mentioned problems.
-> Skype v5.2
-> Skype v2.8
Microsoft has its hands in it now, destined to become complete marketing marketshare grabbing garbage.