Comment 53 for bug 120434

Video showing strangely in Skype?

This is due to the codec running only in 640x480 - there's a bug with the resizing of video size I believe but there is a workaround for Skype.

Go to ~/.Skype and in your username folder - there is a file - config.xml.

Make a backup copy of it.

Now edit the file and add this:

<Video>
<CaptureHeight>480</CaptureHeight>
<CaptureWidth>640</CaptureWidth>
</Video>

Put it in between the <Lib></Lib> section (I put it at the bottom in my case)

Start up Skype. This might fix it for you if your video is strange. As a workaround, I'm happy enough with this until things improve.

Cheers