A very simple hack!!
I recently met Michael Jackson, the COO of Skype who explained how anyone can get high quality video on Skype calls on a Macintosh. I am not sure if this works on a PC.
After downloading the latest version of Skype (later than 2.5), quit the application and open the config.xml file associated with the account.
Navigate to the config.xml file via folders: home folder/library/application support/skype/yourskypeaccount
Open the file using Textedit and find the block marked <video> that might resemble:
Add height and width information:
Save and close config.xml, restart Skype and do a video call. The remote party should now see your picture in 640×480 resolution, instead of the standard quality 320×240.
Both parties need a fairly high-end computer (Mac or PC) to get good quality and framerate, plus a good Internet connection.
This should work, but more detail available here on the Skype developer blog.