I've got a webcam and tried the new feature, then found that works well,
as well as MSN Messenger does. I felt MSN performs a lips syncing better.

john wrote:
> But when I actually tried skyping someone they couldn't see me! Why 
> would that be? The odd thing is I can see nothing on the Skype website 
> about any of this.

Let me check your and your partner's configs:

Yours:
Tools > Options... ==> Video (BETA) ==>
   Check "Enable Skype Video"
   Check "When I'm in a call: [x] Start my video automatically"

Your partner's:

Check whether Skype's version is later than 2.0. Both you
and your partner should be >= 2.0.

Tools > Options... ==> Video (BETA) ==>
   Turn "Automatically receive video from:" into "People in my Contact List"

Your picture would be sent only after given all above.
Already done? I don't have any more idea...

--OTA Takashi