First, make sure that you have installed the updated version of Skype from the Market. Next, log into skype and select the Menu button. Next, click on Settings. Scroll down the options menu until you see "Enable video calling". select by putting a check mark in the field on the left. Back out of the settings menu and return to your contacts list. now you should see a little video icon to the left of those contacts who are available for video chat. Hope this helps.