Skype is beta and I tested on both versions (8.04 LTS 32 bits and 9.10 64
bits) that I use and none of them the webcam worked (two different
notebooks... one DV2000 and one K40IN). I don't believe the support for
webcam is stable and never saw it working.

can someone confirm that it really works?

I use Skype almost every day, with webcam, sound and text chat. I am in
Toronto, my wife is on an extended visit to China.

I have two computers available, each with similar webcams. One is six years
old, and Skype fails on it, in a hard crash. The other was new this summer,
with an AMD Phenom II X2 processor. If I run system monitor when I am
videoconferencing with Skype, it shows that both CPUs are used more than 50%.
That makes me believe Skype will only work for videoconferencing when it is on a
modern, powerful system. It works very well for me.

My Chinese webcam cost almost $10. I'm running 64-bit Linux Mint Gloria (based
on Jaunty) on the Phenom II. (And 32-bit Karmic on the old machine.)

Oops, one more thing. For my webcam to work, I invoke Skype from the command
line with:
bash -c 'LD_PRELOAD=/usr/lib/libv4l/v4l1compat.so skype'

I think this is specific to my webcam, not Skype in general.

its working with :

*bash -c 'LD_PRELOAD=/usr/lib/libv4l/v4l1compat.so skype'*

Skype is proprietary and has its own internal libraries for handling things
like cameras. Cheese on the other hand uses Ubuntu's kernel drivers. This is
not an Ubuntu problem but a Skype one. Skype for Linux users has always been
a headache since they will not work with the open source community and are
content to do things their own way. You might have to find some help forum
for Skype users.