YES!! And the video is PERFECT!! The rear facing cam is good, but the face cam & the quality of the incoming vid is outstanding. Impressive.
The audio incoming is a bit low, but the OP can hear me very well and clear.
The use of an earpiece would sort this.
This is what the iPhone is best at - FREE video calls on Skype!! SUPERB!!
I'm on O2 so don't have to worry about data usage. Skype video isn't much anyway.
There is no 3G here exactly, but i DO use Wi-Fi at home. Skype in any room in the house, and all without my MBP.
Well done Apple & Skype (seperately).
If you don't have one, get one - the iPhone 4 RULES now. I s'pose.
NB: And even though the signal can go lower, it HASN'T dropped any calls (video or otherwise). I only wish they'd make a better case - the 3GS one was excellent, but it doesn't fit the iPhone 4 G. It's my ONLY qualm with it now, and I still check any time I go by <any> phone-[s] shop.